[WSBARP] Excise Tax Question

[Drayna, Paul S.]

I had a similar transaction some years ago. We claimed the "no change in beneficial interest" exemption. DOR challenged it. We produced copies of the K-1's issued by the LLC showing that beneficial ownership had not in fact changed. DOR accepted that and closed the file. That was many years ago, so who knows what they'd do these days given their more aggressive posture on exemption audits.

Paul S. Drayna | Helsell Fetterman LLP
Attorney | Of Counsel
800 Fifth Avenue, Suite 3200
Seattle, WA 98104
Direct: 206.689.2177
pdrayna at helsell.com<mailto:pdrayna at helsell.com>
www.helsell.com<http://www.helsell.com>

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of mikej at riachgese.com
Sent: Wednesday, November 20, 2024 5:20 PM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] Excise Tax Question

[EXTERNAL MESSAGE]
Excise Tax Gurus,

PC and spouse own home 50/50 they want to transfer home to Washington LLC.  The WA LLC is wholly owned by their Wyoming LLC which is owned 50/50 by PC and spouse.

There is debt on the home, which lender will not call due.

Does the transfer of the home to the WA LLC change the beneficial interest such that excise tax will be owed, or is there no real change in beneficial interest because the WY  LLC is 50/50?

Sincerely,

Michael P. Jacobs
Riach Gese Jacobs, PLLC
7331 196th St. SW | PO Box 1067 | Lynnwood, WA 98036
Phone: (425) 776-3191 | Fax: (425) 425-775-0406

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