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<p class="MsoNormal">Perhaps not a perfect solution because there would be evidence of “C” being in existence , just not who “C” is, would be for A to take B’s interest as a nominee for an undisclosed principal. Not sure this would work but either but thinking
outside the box transfer B’s interest to a manager managed LLC, managed by A but owned by C. It would take more digging to find out about C. Those are my oddball thoughts for this Friday.
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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>Umar Gebril<br>
<b>Sent:</b> Friday, January 14, 2022 11:32 AM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBARP] Excise Tax Question<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Listmates, <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Here’s a scenario I’d be interested in getting your opinions on:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">A and B are both unmarried and currently own Property in joint tenancy WROS.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">A wants to remove B from title, and then add C to title and own Property together as TIC. B is amenable to being bought out, and has agreed to sell her interest in the Property back to A for $350k. B does not know that C exists and B is
not aware that A intends to add C to title after B is removed. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">My initial thought is to first utilize a QCD to break the joint tenancy and remove B from title (thereby triggering excise tax liability on the part of B for the transfer in interest), and then subsequently completing a 2<sup>nd</sup> deed
(QCD, WD…?) in order to add C to title. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">However, by proceeding this way, I believe that in executing the 2<sup>nd</sup> deed (from A to C, as TIC), A will incur excise tax – which we want to avoid.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Aside from having B transfer her interest directly to C (and thereby finding out about C’s existence), can you think of another way or means that would allow us to complete this without having A incur excise tax?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thoughts and comments appreciated. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Umar<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-family:"Century Schoolbook",serif;color:black">Umar Gebril</span><span style="font-family:"Century Schoolbook",serif;color:#385723"> | Attorney | Partner<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-family:"Century Schoolbook",serif;color:#385723">Cascade Law, PLLC</span></b><span style="font-size:12.0pt;font-family:"Century Schoolbook",serif;color:#385723"><o:p></o:p></span></p>
<p class="MsoNormal"><a href="http://www.cascade-law.com"><span style="font-family:"Century Schoolbook",serif">www.cascade-law.com</span></a><span style="font-family:"Century Schoolbook",serif;color:#002451">
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Century Schoolbook",serif;color:#385723">1604 Hewitt Ave, Suite 515</span><span style="font-size:12.0pt;font-family:"Century Schoolbook",serif;color:#385723"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Century Schoolbook",serif;color:#385723">Everett, WA 98201</span><span style="font-size:12.0pt;font-family:"Century Schoolbook",serif;color:#385723"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Century Schoolbook",serif;color:#385723">425.300.5616<o:p></o:p></span></p>
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