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<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D">WAC 458-61A-101(11) states that the transfer and acquisition of a controlling interest in an entity that owns real estate in Washington is statutorily defined as a "sale" of the real property
owned by the entity. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D">So, I am pretty sure only the standard REET exemptions are going to apply.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman","serif";color:#1F497D">Eric J. Lanza, J.D.<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:10.5pt;font-family:"Century Gothic","sans-serif";color:#E36C0A"><img width="371" height="105" id="Picture_x0020_1" src="cid:image001.jpg@01D1CC8D.3CA9C8B0" alt="Logo Color 2011 update 2"><o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-family:"Dutch 801 Roman","serif";color:#2B6346">1800 Cooper Point Rd. SW No. 8
</span><span style="font-family:"Times New Roman","serif";color:#2B6346">•</span><span style="font-family:"Times New Roman","serif";color:black">
</span><span style="font-family:"Dutch 801 Roman","serif";color:#2B6346">Olympia, WA 98502 •</span><span style="font-size:12.0pt;font-family:"Dutch 801 Roman","serif";color:#2B6346"> </span><span style="font-family:"Dutch 801 Roman","serif";color:#4C4C4C"><a href="http://www.jaglaw.net/"><span style="color:blue">www.jaglaw.net</span></a></span><span style="font-size:12.0pt;font-family:"Dutch 801 Roman","serif";color:#2B6346">
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Dutch 801 Roman","serif";color:#2B6346">Telephone • 360.352.1970 • Fax 360.357.0844<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Rob Rowley<br>
<b>Sent:</b> Wednesday, June 22, 2016 1:40 PM<br>
<b>To:</b> WSBA RPPT<br>
<b>Subject:</b> [WSBARP] Transfer of LLC Member Interests And Excise Tax<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I’m passing on an inquiry from a fellow attorney:<o:p></o:p></p>
<p class="MsoNormal">Thanks. <o:p></o:p></p>
<p class="MsoNormal">Rob Rowley<o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">________________________<o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal"><b>We recently did a closing where an LLC owned real property and sold their LLC ownership to a buyer for an agreed price. We had the seller still pay excise tax under "sale of controlling interest". </b><o:p></o:p></p>
<p class="MsoNormal"><b> </b><o:p></o:p></p>
<p class="MsoNormal"><b>Then I had a client ask me the other day, "When a huge shopping center is sold, do you think the seller pays excise tax if they transfer the entity to the buyer (with possible problems!!!)? It made me wonder if there is some way that
sellers get around excise tax....by use of LLCs or something.</b><o:p></o:p></p>
<p class="MsoNormal"><b> </b><o:p></o:p></p>
<p class="MsoNormal"><b>Then, just today, a good client asked me if he could get around excise tax by purchasing an existing LLC that owns real estate???</b><o:p></o:p></p>
<p class="MsoNormal"><b> </b><o:p></o:p></p>
<p class="MsoNormal"><b>Have you heard of any such way to avoid it? I haven't and don't think there is.....but I wanted to ask you.</b><o:p></o:p></p>
<p class="MsoNormal"><b> </b><o:p></o:p></p>
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