[WSBARP] Real Estate Excise tax - step transactions

[Craig Gourley]

Listmates, As we all know transfer of a controlling interest in an entity generates excise tax on the value of the entire property, not just the part being transferred.  One obvious solution when one " partner" wants to buy the other out is to dissolve the entity, distribute the asset to the owners as tenants in common ( mere change in form of ownership) and then have the owner sell their interest to the other TIC.   Has anyone seen DOR audit this and try to collapse the transaction to get tax on the full value of the property rather than just the part being transferred?  Thanks, Craig

GOURLEY LAW GROUP
THE EXCHANGE CONNECTION
SNOHOMISH ESCROW
P.O. Box 1091
Snohomish, WA 98291
PH:  (360) 568-5065 (800) 291-8401
Fax: (360) 568-8092

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