[WSBARP] REET on transfer of leasehold improvements?

[Roger Hawkes]

Josh: sounds to me like a case you don't want.

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Joshua Grant
Sent: Thursday, February 9, 2023 5:44 PM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] REET on transfer of leasehold improvements?

My client sold his business, including improvements etc. which he only has a leasehold interest in.  Total sale was $650,000.  The parties didn't allocate anything to real estate.. only equipment and that was $150,000.  (I didn't assist with this closing).  The buildings are on U.S. Bureau Of Reclamation  ground on Banks Lake. The county had a value on buildings at $157,620. The County Treasurer somehow hears about it and tells client he owes REET.  This is my client's statement:
Josh
Spoke in person to XXXXX,Treasurer, in Court House.
He had given me the TeraScan T2 Doc.[which shows a value on some buildings and camp sites at $157,600]
He indicated that paying on the 157,620 would help to NOT get audited by Dept of Revenue.
Also gave me a blank "REAL ESTATE CONTRACT" to record with REET.affid.
So aside from practicing law without a license, my client has been encouraged to sign a RE contract with his purchaser, to commit him to sell real estate he doesn't own, and record it and of course pay on a dreamt up RE value that the County came up with.  Again the agreed upon allocation is only $120,000 and that is on all equipment which includes boats and outboard motors etc. beyond the RE improvements. For the reason that it would help him avoid being audited??!!
I tried to see on line at department of revenue a discussion/form on REET on sale of leaseholds.. without success.
Has anyone run into this before?

Josh


Joshua F. Grant
[cid:image001.png at 01D93D3F.5C79CB20]
P. O. Box 619
Wilbur, WA 99185
509 647 5578
jgrant at advocateslg.com<mailto:jgrant at advocateslg.com>

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