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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal>Parents and Child bought real estate in 2006 as tenants in common. Parents and Child were on deed of trust and all three paid mortgage equally. The house was a rental until 2011 when Parents moved into the house and refinanced the loan in their names only. Parents are the only ones paying mortgage since 2011. During the 2011 refinancing, Child wanted to exit title but escrow agent advised them to leave the deed alone because it would be expensive. Because Parents have two children and is doing estate planning, Parents prefer Child exit title now and Child wants to quit claim her interest to parents, there’s a 90K mortgage balance on it now and no consideration will change hands (except Parents will continue to pay mortgage). The balance at the time of 2011 refinancing was $100K. Parents do not mind pay excise tax. Is the excise tax 1/3 of $90K (today’s mortgage balance). Could DOR assert that the 2011 refinancing was a sale that should have triggered excise tax? I don’t think so because Child’s name was on title then. Parents do not mind paying excise tax from the time of refinancing, plus interest. Parents really don’t want to get audited and have to deal with the audit. I may be over thinking this and appreciate any insights. Thank you!<o:p></o:p></p><p class=MsoNormal style='margin-bottom:2.0pt'><o:p> </o:p></p><p class=MsoNormal style='margin-bottom:2.0pt'>Regards,<span style='font-size:8.0pt;font-family:"Arial","sans-serif";color:black'> <br><br></span><b><span style='font-size:12.0pt;color:#0070C0'>Doris Eslinger</span></b><span style='font-size:8.0pt;font-family:"Arial","sans-serif";color:black'><br></span><b><span style='font-size:9.0pt;color:#0070C0'>Attorney at Law</span></b><span style='font-size:8.0pt;font-family:"Arial","sans-serif";color:black'><br></span><b><span style='font-family:"Felix Titling";font-variant:small-caps;color:#1F497D;letter-spacing:.6pt'>Eslinger Law Office, </span></b><b><span style='font-family:"Felix Titling";color:#1F497D;letter-spacing:.6pt'>PLLC</span></b><b><span style='font-size:12.0pt;font-family:"Garamond","serif";color:#1F497D;letter-spacing:2.0pt'> </span></b><span style='font-size:8.0pt;font-family:"Arial","sans-serif";color:black'><br>2200 112th Ave NE | Suite 200 | Bellevue, WA 98005 | Phone: (425) 451-3237 | <br>Fax: (425) 633-2468 | <a href="mailto:doris@eslingerlawoffice.com"><span style='color:#0065A2'>doris@eslingerlawoffice.com</span></a> | </span><span style='font-size:8.0pt;font-family:"Arial","sans-serif";color:#0070C0'><a href="http://www.eslingerlawoffice.com/"><span style='color:#0070C0'>eslingerlawoffice.com</span></a></span><span style='font-size:8.0pt;font-family:"Arial","sans-serif";color:black'> </span><span style='color:#1F497D'> </span><span style='font-size:8.0pt;font-family:"Arial","sans-serif";color:black'><br></span><b><span style='font-size:8.0pt;color:#1F497D;letter-spacing:.6pt'><br></span></b><span style='font-size:8.0pt;font-family:"Times New Roman","serif";color:#1F497D'>----------------------------------------------------------------------------------------------------<o:p></o:p></span></p><p class=MsoNormal style='line-height:8.0pt;mso-line-height-rule:exactly'><span style='font-size:8.0pt;font-family:"Times New Roman","serif";color:black'><br></span><span style='font-size:8.0pt;font-family:"Times New Roman","serif";color:#1F497D'>This message is intended only for the addressee. The information contained in this message is privileged, confidential, and protected by the attorney-client or attorney work product privileges. Unauthorized forwarding, printing, copying, distribution, disclosure or use of such information is strictly prohibited. If you are not the addressee, please promptly delete this message and notify the sender of the delivery error by return e-mail or you may call our office at (425) 451-3237. Nothing in this message should be interpreted as a digital or electronic signature that can be used to authenticate a contract or other legal document.<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>