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</o:shapelayout></xml><![endif]--></head><body bgcolor=white lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><span style='color:windowtext'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:windowtext'>I’m going to tiptoe in to offer an opinion as much as ask some questions. It’s my understanding that a H/W LLC can be treated as a disregarded entity and thus they still get the benefit of the home sale exclusion under IRC 121. I’m basing my understanding on the attached Rev. Proc. I had saved away along with some old notes (not attached).<o:p></o:p></span></p><p class=MsoNormal><span style='color:windowtext'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:windowtext'>Thanks, <o:p></o:p></span></p><div><p class=MsoNormal><b><span style='font-family:"Calibri Light",sans-serif;color:#1F497D'>Cody R. Moore <o:p></o:p></span></b></p><p class=MsoNormal><span style='font-family:"Calibri Light",sans-serif;color:#1F497D'>Westberg Roepke Moore, PLLC<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri Light",sans-serif;color:#1F497D'>(208) 883-1520<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>_______________________________________________________________________________</span><span style='font-family:"Calibri Light",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>This transmission, or any attachment thereto, from Westberg Roepke Moore, PLLC is intended only for those persons and/or entities to whom it is addressed. The information transmitted may be confidential and/or protected by a privilege or as attorney work product. If this transmission is not intended for you, please return it and then destroy it completely. Any unauthorized use of this transmission is strictly prohibited.<o:p></o:p></span></p><p class=MsoNormal><span style='color:windowtext'><o:p> </o:p></span></p></div><p class=MsoNormal><span style='color:windowtext'><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='color:windowtext'>From:</span></b><span style='color:windowtext'> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Kary Krismer<br><b>Sent:</b> Wednesday, November 22, 2017 8:44 AM<br><b>To:</b> wsbarp@lists.wsbarppt.com<br><b>Subject:</b> Re: [WSBARP] assignment<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p>I would be surprised if the escrow would go along with that since you would be violating the terms of the P&S agreement.<o:p></o:p></p><p>I have no idea what the tax advisor is thinking, but is it possible that you could just transfer it after the deed is recorded and get the same benefits? I'm fairly certain you could still avoid REET. <o:p></o:p></p><p>As to what you might be missing: 1. No homestead protection; 2. No sale of property excluding 250k/500k of gain on income taxes; and 3. No deduction of interest or real estate taxes. Again I have no idea what the tax advisor is thinking, but the first two of those are two things I wouldn't want to give up--the third might not matter if it's a cash purchase.<o:p></o:p></p><pre>Kary L. Krismer<o:p></o:p></pre><pre>John L. Scott/KMS Renton<o:p></o:p></pre><pre>206 723-2148<o:p></o:p></pre><div><p class=MsoNormal>On 11/21/2017 4:49 PM, Scott Thomas wrote:<o:p></o:p></p></div><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><p class=MsoNormal>Clients entered into P&S agreement, entailing construction of new home. NWMLS form used, which precludes assignment unless seller agrees. Construction of home turned out to be a difficult process, with numerous issues turning up. Long story short, I will make certain neither party sees the other at the escrow office when the sale closes. Now for my question: clients, who entered the P&S agreement as a marital community, have been advised by their tax lawyer that it would be preferable to form an LLC to take title to the property. I am thinking the easiest way to accomplish this is to simply have clients assign their interest in the property at the time of closing, after seller has executed closing documents and the P&S agreement is satisfied, but before the deed is recorded. Transfer taxes should not be an issue, and all obligations under the P&S agreement would be completed. Am I missing anything?<o:p></o:p></p><p class=MsoNormal><br><br><br><o:p></o:p></p><pre>_______________________________________________<o:p></o:p></pre><pre>WSBARP mailing list<o:p></o:p></pre><pre><a href="mailto:WSBARP@lists.wsbarppt.com">WSBARP@lists.wsbarppt.com</a><o:p></o:p></pre><pre><a href="http://mailman.fsr.com/mailman/listinfo/wsbarp">http://mailman.fsr.com/mailman/listinfo/wsbarp</a><o:p></o:p></pre></blockquote><p class=MsoNormal><o:p> </o:p></p></div></body></html>