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<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif">The transaction model explained in prior posts can be done without a second excise tax due under the nominee excise exemption. Just ensure the documentation requirements of (5) are done with
documentation dated before the initial purchase.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">WAC 458-61A-214 (5) Acceptable documentation includes a notarized statement, dated on or before the date of the initial purchase, that the nominee acquired the property
on behalf of the third party, or other documentation clearly demonstrating the requirements of subsection (3) of this section have been satisfied. Such documentation may include, but is not limited to, financial documentation evidencing the nominee/third-party
relationship existed from the time of the original transfer, and confirming the source of the funds used to purchase the property.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif">Reply to the comparison posted by Kary Krismer:
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif">A transaction where a relocation company acquires a deed from the owner with compensation to that owner, then acts to resell the property, does not comply with the nominee exception, for several
reasons. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-indent:.5in;background:white"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:black">(3) <b>Subsequent transfer.</b> The later transfer of the property by the nominee to the third party purchaser is subject
to real estate excise tax, unless each of the following requirements is met:<o:p></o:p></span></p>
<p class="MsoNormal" style="text-indent:.5in;background:white"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:black">(a) The proper tax was paid on the initial purchase of the property by the nominee;<o:p></o:p></span></p>
<p class="MsoNormal" style="text-indent:.5in;background:white"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:black">(b)
<span style="background:yellow;mso-highlight:yellow">The funds used by the nominee to acquire the property were provided by the third party;</span><o:p></o:p></span></p>
<p class="MsoNormal" style="text-indent:.5in;background:white"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:black">(c)
<span style="background:yellow;mso-highlight:yellow">The third party legally existed at the time of the initial transaction</span>; and<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;background:white"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:black">(d)(i)
<span style="background:yellow;mso-highlight:yellow">The subsequent transfer from the nominee to the third party is not for a greater consideration than that of the initial acquisition</span><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060">Also in answer to the question about the purchaser’s insurance against potential excise tax:<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060">All title insurance policy forms issued to the purchaser will insure against the risk that there is unpaid excise tax, because
that is a lien upon the real property, so unless it is shown as a special exception, or the insured purchaser has actual knowledge that a lien exists, their policy will protect against an assessment by DOR. Of course that would remain a debt due from the “seller”
which would be Flyhomes for the second transfer.<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060"><o:p> </o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060">Dwight A. Bickel<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060">Real Property Title Advisor<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060">Washington Title Professional<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="color:black"><a href="mailto:Dwight@DwightBickel.com"><span style="font-family:"Verdana",sans-serif;color:#002060;border:none windowtext 1.0pt;padding:0in">Dwight@DwightBickel.com</span></a></span><span style="font-family:"Verdana",sans-serif;color:#002060"><o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060">https:/dwightbickel.com<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060"><o:p> </o:p></span></p>
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