<html>
<head>
<meta http-equiv="Content-Type" content="text/html; charset=UTF-8">
</head>
<body>
<p>What I meant by raising FIRPTA was whether the couple was
contemplating a future sale and thinking by doing a QCD beforehand
they could avoid FIRPTA. I'm not sure that future sale would give
rise to FIRPTA withholding, but again I'm not sure it wouldn't
either. But I wasn't worried about FIRPTA on the gift.</p>
<p>As to the step up in basis my concern was that the step up would
only apply to community property, not separate property. Also a
question I don't know the answer to. In the back of my mind I
seem to recall it applies to either type of property, but that's
something I'd want to make sure of.<br>
</p>
<pre class="moz-signature" cols="72">Kary L. Krismer
206 723-2148</pre>
<div class="moz-cite-prefix">On 1/12/2021 7:29 PM, John J. Sullivan
wrote:<br>
</div>
<blockquote type="cite"
cite="mid:A1C766C4-5630-4EDD-B46F-FC7494D10522@comcast.net">
<meta http-equiv="content-type" content="text/html; charset=UTF-8">
Good points.
<div><br>
</div>
<div>1. No FIRPTA withholding on gifts. No gain realized. </div>
<div><br>
</div>
<div><a
href="https://www.irs.gov/individuals/international-taxpayers/exceptions-from-firpta-withholding"
moz-do-not-send="true">https://www.irs.gov/individuals/international-taxpayers/exceptions-from-firpta-withholding</a></div>
<div><br>
</div>
<div>2. Yes. If NRA spouse died first there would be a step up in
basis even though estate not subject to estate tax. Perhaps she
transfers her interest to a revocable trust for his benefit? Or
somehow achieve whatever the objective is while not removing it
from her gross estate?</div>
<div><br>
</div>
<div><a
href="https://hodgen.com/why-nonresident-decedents-get-step-up-basis-at-death/"
moz-do-not-send="true">https://hodgen.com/why-nonresident-decedents-get-step-up-basis-at-death/</a></div>
<div><br>
</div>
<div>Don’t forget to check any applicable treaty. </div>
<div><br>
</div>
<div>John J. Sullivan<br>
<br>
<div dir="ltr">Sent from my iPhone</div>
<div dir="ltr"><br>
<blockquote type="cite">On Jan 12, 2021, at 7:15 PM, Kary
Krismer <a class="moz-txt-link-rfc2396E" href="mailto:Krismer@comcast.net"><Krismer@comcast.net></a> wrote:<br>
<br>
</blockquote>
</div>
<blockquote type="cite">
<div dir="ltr">
<meta http-equiv="Content-Type" content="text/html;
charset=UTF-8">
<p>I would take a step back, and if this is just about
FIRPTA, find out if FIRPTA would even apply with a US
Citizen still on title. I sort of doubt it would since
they would have a taxpayer to reach, but I don't know
that.</p>
<p>And then I would think about the step up in basis on
death of community property when a spouse passes away, and
find out whether you'd be giving that away. Without this
transfer and a step up in basis there'd likely be little
or no gain for several years, and even if FIRPTA applied
any money taken would be paid back upon filing a return.
Note that step up in basis would apply whichever spouse
dies first.<br>
</p>
<p>It may be the client is wishing to avoid a non-existent
problem and creating a future liability.<br>
</p>
<pre class="moz-signature" cols="72">Kary L. Krismer
206 723-2148</pre>
<div class="moz-cite-prefix">On 1/12/2021 6:22 PM, John J.
Sullivan wrote:<br>
</div>
<blockquote type="cite"
cite="mid:810EE85B-2A28-4C66-8076-6D385E74DF5C@comcast.net">
<meta http-equiv="content-type" content="text/html;
charset=UTF-8">
If NRA wife gifts now to citizen husband, the unlimited
marital deduction applies.
<div><br>
</div>
<div>I would specify it’s to create separate property and
claim that REET exemption so if she dies her estate has
no CP interest in US source property. </div>
<div><br>
</div>
<div>John J. Sullivan<br>
<br>
<div dir="ltr">Sent from my iPhone</div>
<div dir="ltr"><br>
<blockquote type="cite">On Jan 12, 2021, at 3:42 PM,
Lisa Chiang <a class="moz-txt-link-rfc2396E"
href="mailto:feesimple7@gmail.com"
moz-do-not-send="true"><feesimple7@gmail.com></a>
wrote:<br>
<br>
</blockquote>
</div>
<blockquote type="cite">
<div dir="ltr">
<div dir="ltr">
<div class="gmail_default"
style="font-size:large;color:#351c75">Hi all,</div>
<div class="gmail_default"
style="font-size:large;color:#351c75"><br>
</div>
<div class="gmail_default"
style="font-size:large;color:#351c75">A silly
question, as it's been awhile since I've dealt
with this scenario, so want to be sure:</div>
<div class="gmail_default"
style="font-size:large;color:#351c75"><br>
</div>
<div class="gmail_default"
style="font-size:large;color:#351c75">Client is
U.S. citizen. Wife used to hold a green card,
which she gave up after they moved overseas a
decade ago. IRS deems her to be a non resident
alien (NRA) for tax purposes. Kids are also
U.S. citizens (all minors currently). <br>
</div>
<div class="gmail_default"
style="font-size:large;color:#351c75"><br>
</div>
<div class="gmail_default"
style="font-size:large;color:#351c75">Real
estate in WA state acquired as community
property when they both lived and worked here.
<br>
</div>
<div class="gmail_default"
style="font-size:large;color:#351c75"><br>
</div>
<div class="gmail_default"
style="font-size:large;color:#351c75">Client
would like to take his wife off title of WA
house (she's agreeable). <br>
</div>
<div class="gmail_default"
style="font-size:large;color:#351c75"><br>
</div>
<div class="gmail_default"
style="font-size:large;color:#351c75"><b>Wondering
about gift tax issues before we proceed.
(Will prepare QDOT for other liquid assets).
Any thoughts or wisdom from the group is
greatly appreciated.</b> <br>
</div>
<div class="gmail_default"
style="font-size:large;color:#351c75"><br>
</div>
<div class="gmail_default"
style="font-size:large;color:#351c75">Kind
regards, <br>
</div>
<div class="gmail_default"
style="font-size:large;color:#351c75">Lisa<br>
</div>
<div class="gmail_default"
style="font-size:large;color:#351c75"><br
clear="all">
</div>
<br>
-- <br>
<div dir="ltr" class="gmail_signature"
data-smartmail="gmail_signature">
<div dir="ltr">
<div>
<div dir="ltr">
<div>
<div dir="ltr">
<div>
<div dir="ltr">
<div>
<div dir="ltr">
<div><font size="2"
face="monospace,monospace"><span
style="background-color:rgb(255,255,255)"><span><span
style="background-color:rgb(53,28,117)"><span
style="background-color:rgb(238,238,238)"></span></span></span></span><span
style="background-color:rgb(238,238,238)"><i><br>
</i></span></font></div>
<div><span
style="color:rgb(53,28,117)"><font
size="4"><font
face="monospace,monospace"><font
size="2"><span
style="background-color:rgb(238,238,238)"><i><font
size="4">Estate
planning and
settlement,
trusts, real
estate and <span
class="gmail_default" style="font-size:large;color:rgb(53,28,117)">probate</span></font></i></span><br>
</font></font></font></span></div>
<div><font size="4"><span
style="color:rgb(53,28,117)"><font
face="monospace,monospace">206.569.8838</font></span></font><b><font
size="4"><font
face="monospace,monospace"><font
size="2"><br>
</font></font></font></b><span
style="background-color:rgb(243,243,243)"><span></span></span><br>
<p style="background:white
none repeat scroll 0% 0%"><span
style="font-family:monospace,monospace"><span
style="font-size:11pt;color:rgb(31,73,125)">This
electronic mail
transmission and any
accompanying documents
contain information
belonging to the
sender which may be
confidential and
legally privileged.
This information is
intended only for the
use of the individual
or entity to whom this
electronic mail
transmission was sent
as indicated above. If
you are not the
intended recipient,
any disclosure,
copying, distribution,
or action taken in
reliance on the
contents of the
information contained
in this transmission
is strictly
prohibited. If you
have received this
transmission in error,
please delete the
message. Thank you.</span><span
style="color:rgb(31,73,125)"></span></span></p>
<p style="background:white
none repeat scroll 0% 0%"><b><span
style="font-family:monospace,monospace"><span
style="font-size:11pt;color:rgb(31,73,125)"> </span></span></b></p>
<span
style="font-family:monospace,monospace"><span
style="font-size:11pt;color:rgb(31,73,125)"><b>Circular 230 Disclaimer</b>.
Any U.S. federal tax
advice contained in this
communication (including
any attachments) is not
intended or written to
be used, and may not be
used, for the purpose of
(i) avoiding penalties
under the Internal
Revenue Code or (ii)
promoting, marketing or
recommending to another
party any transaction or
matter addressed herein.</span></span></div>
<div><font size="4"><font
face="monospace,monospace"><br>
</font></font></div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
<span>***Disclaimer: Please note that RPPT listserv
participation is not restricted to practicing
attorneys and may include non-practicing
attorneys, law students, professionals working in
related fields, and others.***</span><br>
<span></span><br>
<span>_______________________________________________</span><br>
<span>WSBARP mailing list</span><br>
<span><a class="moz-txt-link-abbreviated"
href="mailto:WSBARP@lists.wsbarppt.com"
moz-do-not-send="true">WSBARP@lists.wsbarppt.com</a></span><br>
<span><a class="moz-txt-link-freetext"
href="http://mailman.fsr.com/mailman/listinfo/wsbarp"
moz-do-not-send="true">http://mailman.fsr.com/mailman/listinfo/wsbarp</a></span></div>
</blockquote>
</div>
<br>
<fieldset class="mimeAttachmentHeader"></fieldset>
<pre class="moz-quote-pre" wrap="">***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***
_______________________________________________
WSBARP mailing list
<a class="moz-txt-link-abbreviated" href="mailto:WSBARP@lists.wsbarppt.com" moz-do-not-send="true">WSBARP@lists.wsbarppt.com</a>
<a class="moz-txt-link-freetext" href="http://mailman.fsr.com/mailman/listinfo/wsbarp" moz-do-not-send="true">http://mailman.fsr.com/mailman/listinfo/wsbarp</a></pre>
</blockquote>
<div id="DAB4FAD8-2DD7-40BB-A1B8-4E2AA1F9FDF2">
<br>
<br>
<hr style="border:none; color:#909090;
background-color:#B0B0B0; height: 1px; width: 99%;">
<table style="border-collapse:collapse;border:none;">
<tbody>
<tr>
<td style="border:none;padding:0px 15px 0px 8px"> <a
href="https://www.avast.com/antivirus"
moz-do-not-send="true"> <img
src="https://static.avast.com/emails/avast-mail-stamp.png"
alt="Avast logo" data-unique-identifier=""
moz-do-not-send="true" border="0"> </a> </td>
<td>
<p style="color:#3d4d5a;
font-family:"Calibri","Verdana","Arial","Helvetica";
font-size:12pt;"> This email has been checked
for viruses by Avast antivirus software. <br>
<a href="https://www.avast.com/antivirus"
moz-do-not-send="true">www.avast.com</a> </p>
</td>
</tr>
</tbody>
</table>
<br>
<a href="#DAB4FAD8-2DD7-40BB-A1B8-4E2AA1F9FDF2" width="1"
height="1" moz-do-not-send="true"> </a></div>
<span>***Disclaimer: Please note that RPPT listserv
participation is not restricted to practicing attorneys
and may include non-practicing attorneys, law students,
professionals working in related fields, and others.***</span><br>
<span></span><br>
<span>_______________________________________________</span><br>
<span>WSBARP mailing list</span><br>
<span><a class="moz-txt-link-abbreviated" href="mailto:WSBARP@lists.wsbarppt.com">WSBARP@lists.wsbarppt.com</a></span><br>
<span><a class="moz-txt-link-freetext" href="http://mailman.fsr.com/mailman/listinfo/wsbarp">http://mailman.fsr.com/mailman/listinfo/wsbarp</a></span></div>
</blockquote>
</div>
<br>
<fieldset class="mimeAttachmentHeader"></fieldset>
<pre class="moz-quote-pre" wrap="">***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***
_______________________________________________
WSBARP mailing list
<a class="moz-txt-link-abbreviated" href="mailto:WSBARP@lists.wsbarppt.com">WSBARP@lists.wsbarppt.com</a>
<a class="moz-txt-link-freetext" href="http://mailman.fsr.com/mailman/listinfo/wsbarp">http://mailman.fsr.com/mailman/listinfo/wsbarp</a></pre>
</blockquote>
</body>
</html>