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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">I like the !% tax in the subject line--looks like you're swearing. :-)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Only transfer of a controlling interest in an entity triggers REET, and then it's based on the full value of the real estate. See
<a href="http://apps.leg.wa.gov/wac/default.aspx?cite=458-61A-101">WAC 458-61A-101</a>.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">There indeed is a different form to use, available at the same website though--<a href="https://dor.wa.gov/get-form-or-publication/forms-subject/real-estate-excise-tax">https://dor.wa.gov/get-form-or-publication/forms-subject/real-estate-excise-tax</a><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">SAYRE LAW OFFICES, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">1417 31st Ave South<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Seattle WA 98144-3909<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">phone 206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">fax 206-625-9040<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-family:"Calibri","sans-serif";color:red">Please Note that We Have Moved.</span></b><b><span style="font-family:"Calibri","sans-serif";color:#1F497D">
</span></b><span style="font-family:"Calibri","sans-serif";color:#1F497D">We have moved our Seattle office to Mount Baker Ridge (a small commercial community just above the I-90 tunnel).
<b>Our new address is 1417 31st Avenue South, Seattle WA 98144. </b>All other contact information remains the same.<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>Josh Grant<br>
<b>Sent:</b> Tuesday, September 12, 2017 2:17 PM<br>
<b>To:</b> wsbar<br>
<b>Subject:</b> [WSBARP] LLC transfer and real property - !% tax?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Calibri","sans-serif";color:black">Two brothers inherited from their parents. Brother A received real property; Brother B and Brother A each received 1/7th interest in an LLC which holds only
real property.</span><span style="font-size:14.0pt;font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Calibri","sans-serif";color:black"> <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Calibri","sans-serif";color:black">The two brothers wish to realign the property between themselves.</span><span style="font-size:14.0pt;font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Calibri","sans-serif";color:black"> <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Calibri","sans-serif";color:black">I assume when Brother A gives real property to Brother B because he is getting interests in an LLC in return, that the 1% tax needs to be paid (based on the assessed
value of the land he is getting).</span><span style="font-size:14.0pt;font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Calibri","sans-serif";color:black"> <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Calibri","sans-serif";color:black">I think I saw a discussion here that when Brother B gives Brother A interests in the LLC that that also triggers the 1% tax, again based on the value of the land
.</span><span style="font-size:14.0pt;font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Calibri","sans-serif";color:black"> <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Calibri","sans-serif";color:black">IF so how does one pay the tax? Is there a special 1% form to be used when LLC membership percentages are being transferred in this situation.</span><span style="font-size:14.0pt;font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Calibri","sans-serif";color:black"> <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Calibri","sans-serif";color:black">thanks</span><span style="font-size:14.0pt;font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Calibri","sans-serif";color:black"> <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Calibri","sans-serif";color:black">Joshua F. Grant, PS<br>
Attorney at Law<br>
P. O. Box 619<br>
Wilbur, WA 99185<br>
tel 509 647 5578<br>
fax 509 647 2734<o:p></o:p></span></p>
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