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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>You can find the excise tax affidavit for a controlling interest transfer here: <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><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'>The instructions included therein should assist you.<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'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>John McCrady<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Puget Sound Title Company<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>5350 Orchard Street West<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>University Place WA 98467<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>253-476-5721<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>j.mccrady@pstitle.com<o:p></o:p></span></p></div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",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 <wsbarp@lists.wsbarppt.com><br><b>Subject:</b> [WSBARP] LLC transfer and real property - !% tax?<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><div><div><div><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></div><div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Calibri",sans-serif;color:black'> <o:p></o:p></span></p></div><div><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></div><div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Calibri",sans-serif;color:black'> <o:p></o:p></span></p></div><div><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></div><div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Calibri",sans-serif;color:black'> <o:p></o:p></span></p></div><div><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></div><div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Calibri",sans-serif;color:black'> <o:p></o:p></span></p></div><div><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></div><div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Calibri",sans-serif;color:black'> <o:p></o:p></span></p></div><div><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></div><div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Calibri",sans-serif;color:black'> <o:p></o:p></span></p></div><div><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></div></div></div></div></body></html>