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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black">A CMA was done, no appraisal.
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<p class="MsoNormal"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Kate Love<br>
<b>Sent:</b> Friday, November 20, 2020 9:18 AM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBARP] Excise tax question with part inheritance part consideration<o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black">what is the basis for the $400K value?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black">(I am doing a set of transfers based on very similar facts in King County right now
</span><span style="font-size:12.0pt;font-family:"Segoe UI Emoji",sans-serif;color:black">😉</span><span style="font-size:12.0pt;color:black">)<o:p></o:p></span></p>
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<p style="background:white"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:navy">Kate F. Love</span><span style="color:#201F1E"><o:p></o:p></span></p>
<p style="background:white;text-align:start"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:navy">WSBA No. 51314</span><span style="color:#201F1E"><o:p></o:p></span></p>
<p style="background:white;text-align:start"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:navy"> </span><span style="color:#201F1E"><o:p></o:p></span></p>
<p style="background:white;text-align:start"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:navy"> </span><span style="color:#201F1E"><o:p></o:p></span></p>
<p style="background:white;text-align:start"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1E0A56">Hawkes Law Firm P.S.</span><span style="color:#201F1E"><o:p></o:p></span></p>
<p style="background:white;text-align:start"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1E0A56">main line 206 367 5000<br>
fax line 206 367 4005<br>
<a href="mailto:katel@law-hawks.com" target="_blank">katel@law-hawks.com</a></span><span style="color:#201F1E"><o:p></o:p></span></p>
<p style="background:white;text-align:start"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1E0A56"><a href="http://www.hawkeslawcenter.com/" target="_blank">www.hawkeslawcenter.com</a></span><span style="color:#201F1E"><o:p></o:p></span></p>
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<p style="background:white;text-align:start"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1E0A56">19944 Ballinger Way NE Ste #100</span><span style="color:#1E0A56"><o:p></o:p></span></p>
<p style="background:white"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1E0A56">Shoreline, WA 98155</span><span style="color:#201F1E"><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="color:black">From:</span></b><span style="color:black">
<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>> on behalf of John McCrady <<a href="mailto:j.mccrady@pstitle.com">j.mccrady@pstitle.com</a>><br>
<b>Sent:</b> Friday, November 20, 2020 9:03 AM<br>
<b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> Re: [WSBARP] Excise tax question with part inheritance part consideration</span>
<o:p></o:p></p>
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<p class="xmsonormal"><span style="color:#1F497D">I infer from your description that in the minds of the three heirs there is a perhaps unconscious assumption that the $400,000 value can be divided as follows:</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#1F497D">$210,000 cash (which is consideration)</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#1F497D">$56,666.67 services rendered (which is also consideration)</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#1F497D">$133,333.33 inheritance (which is not consideration)</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#1F497D">So excise tax would be owing on consideration paid of $266,666.67</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
<div>
<p class="xmsonormal"><span style="color:#1F497D">John McCrady</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#1F497D">Counsel</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#1F497D">Puget Sound Title Company</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#1F497D">5350 Orchard Street West</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#1F497D">University Place WA 98467</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#1F497D">253-476-5721</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#1F497D"><a href="mailto:j.mccrady@pstitle.com"><span style="color:#0563C1">j.mccrady@pstitle.com</span></a></span><o:p></o:p></p>
<p class="xmsonormal" style="margin-top:6.0pt"><b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">WARNING-FRAUDULENT FUNDING INSTRUCTIONS
</span></b><o:p></o:p></p>
<p class="xmsonormal" style="margin-top:6.0pt"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">Email hacking and fraud are on the rise to fraudulently misdirect funds. Please call your escrow officer immediately using contact information
found from an independent source, such as the sales contract or internet, to verify any funding instructions received. We are not responsible for any wire sent by you to an incorrect bank account.</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
<p class="xmsonormal" style="margin-bottom:12.0pt"><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#2E74B5">***Due to the Covid 19 outbreak and with concern for the health and safety of our employees and community; our
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<p class="xmsonormal"><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">
wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">mailto:wsbarp-bounces@lists.wsbarppt.com</a>]
<b>On Behalf Of </b>Kristina Driessen<br>
<b>Sent:</b> Friday, November 20, 2020 7:20 AM<br>
<b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBARP] Excise tax question with part inheritance part consideration<o:p></o:p></p>
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<p class="xmsonormal"> <o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black">Good Morning:</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black">Maybe I way over thinking this but I am spinning my wheels on this issue.</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black">Facts: An estate has been opened with the courts, [intestate]. The only real asset is a home [plus a very small bank account] There are 3 heirs. One of the heirs
wishes to purchase the home as she has been residing in the home caring for the decedent. All agree to give the heir that cared for the decedent a larger percentage of the home. There are not enough assets to do a like kind sort of transfer. Heir is obtaining
a loan to buy the home. The sale price to the one heir is 210,000.00</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black">Just throwing out numbers…. If the home is valued at $400,000.00 each heir technically has an interest valued at $133,333.33.
</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black">Would the excise tax be on the 210K OR difference in the sale price and her actual inheritance =$76,666.67 OR the difference in the value and her actual inheritance
$267,666.67.</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black">Thanks in advance!</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="xmsonormal"><i><span style="font-size:10.0pt;font-family:"Bookman Old Style",serif;color:black">Kristina A. Driessen</span></i><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:10.0pt;font-family:"Bookman Old Style",serif;color:black">“A” Street Legal Services, Inc. P.S</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:10.0pt;font-family:"Bookman Old Style",serif;color:black">Attorneys at Law</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:10.0pt;font-family:"Bookman Old Style",serif;color:black">16 A Street SE</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:10.0pt;font-family:"Bookman Old Style",serif;color:black">Auburn, WA. 98002</span><o:p></o:p></p>
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<p class="xmsonormal"><span style="font-size:10.0pt;font-family:"Bookman Old Style",serif;color:black">astreetlegalservices.com</span><o:p></o:p></p>
<p class="xmsonormal"><u><span style="font-size:10.0pt;font-family:"Bookman Old Style",serif;color:black"><a href="mailto:kristina@rdattys.comcastbiz.net">kristina@rdattys.comcastbiz.net</a></span></u><o:p></o:p></p>
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