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<DIV><FONT size=4>Happy to Rod...</FONT></DIV>
<DIV><FONT size=4>More simply, When less than 50% minority members assign
their membership interest to kids (who are also minority members); and after
assignment kids are still all minority members, and it is a gift... not a
sale... I assume there is no requirement to file a controlling interest
REET affid. and/or pay REET taxes?</FONT></DIV>
<DIV><FONT size=4>thanks</FONT></DIV>
<DIV><FONT size=4>Josh</FONT></DIV>
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<DIV><STRONG><SPAN style="FONT-SIZE: 18pt; COLOR: #004080">Joshua F.
Grant</SPAN></STRONG><SPAN style="COLOR: #004080"><BR></SPAN><SPAN
style="COLOR: black"><IMG title=advocates
style="BORDER-TOP: 0px; BORDER-RIGHT: 0px; BACKGROUND-IMAGE: none; BORDER-BOTTOM: 0px; PADDING-TOP: 0px; PADDING-LEFT: 0px; BORDER-LEFT: 0px; DISPLAY: inline; PADDING-RIGHT: 0px"
border=0 alt=advocates src="cid:104F98E9418C45F4B4A356AE8B754646@JoshPC"
width=207 height=43><BR></SPAN><SPAN style="FONT-SIZE: 11pt; COLOR: #004080">P.
O. Box 619<BR>Wilbur, WA 99185<BR>509 647 5578</SPAN><SPAN
style="COLOR: black"><o:p></o:p></SPAN></DIV></DIV></DIV></DIV>
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style='FONT-SIZE: small; TEXT-DECORATION: none; FONT-FAMILY: "Calibri"; FONT-WEIGHT: normal; COLOR: #000000; FONT-STYLE: normal; DISPLAY: inline'>
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<DIV style="BACKGROUND: #f5f5f5">
<DIV style="font-color: black"><B>From:</B> <A title=rodharmon@msn.com>Rod
Harmon</A> </DIV>
<DIV><B>Sent:</B> Thursday, June 02, 2022 9:14 AM</DIV>
<DIV><B>To:</B> <A title=wsbarp@lists.wsbarppt.com>WSBA Real Property
Listserv</A> </DIV>
<DIV><B>Subject:</B> Re: [WSBARP] REET tax and change of cotnrolling
interest</DIV></DIV></DIV>
<DIV> </DIV></DIV>
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style='FONT-SIZE: small; TEXT-DECORATION: none; FONT-FAMILY: "Calibri"; FONT-WEIGHT: normal; COLOR: #000000; FONT-STYLE: normal; DISPLAY: inline'>
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<P class=MsoNormal><FONT size=2 face=Calibri><SPAN
style="FONT-SIZE: 11pt">Joshua, I am not following your math. Could you
clarify?<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT size=2 face=Calibri><SPAN
style="FONT-SIZE: 11pt"><o:p></o:p></SPAN></FONT> </P>
<P class=MsoNormal><FONT color=#1f497d size=4 face=Arial><SPAN
style='FONT-SIZE: 13pt; FONT-FAMILY: "Arial",sans-serif; COLOR: #1f497d'>Rod
Harmon</SPAN></FONT><o:p></o:p></P>
<P class=MsoNormal><B><FONT color=#1f497d size=4 face=Arial><SPAN
style='FONT-SIZE: 13pt; FONT-FAMILY: "Arial",sans-serif; FONT-WEIGHT: bold; COLOR: #1f497d'> </SPAN></FONT></B><o:p></o:p></P>
<P class=MsoNormal><B><FONT color=#1f497d size=4 face=Arial><SPAN
style='FONT-SIZE: 13pt; FONT-FAMILY: "Arial",sans-serif; FONT-WEIGHT: bold; COLOR: #1f497d'>RODNEY
T. HARMON</SPAN></FONT></B><o:p></o:p></P>
<P class=MsoNormal><B><FONT color=#1f497d size=2 face=Arial><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial",sans-serif; FONT-WEIGHT: bold; COLOR: #1f497d'>
Attorney at Law</SPAN></FONT></B><o:p></o:p></P>
<P class=MsoNormal><FONT color=#1f497d size=2 face=Arial><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Arial",sans-serif; COLOR: #1f497d'>
P.O. Box 1066</SPAN></FONT><o:p></o:p></P>
<P class=MsoNormal><FONT color=#1f497d size=2 face=Arial><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Arial",sans-serif; COLOR: #1f497d'>
Bothell, WA 98041</SPAN></FONT><o:p></o:p></P>
<P class=MsoNormal><FONT color=#1f497d size=2 face=Arial><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Arial",sans-serif; COLOR: #1f497d'>
Tel: (425) 402-7800</SPAN></FONT><o:p></o:p></P>
<P class=MsoNormal><FONT color=#1f497d size=2 face=Arial><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Arial",sans-serif; COLOR: #1f497d'>
Fax: (425) 458-9096</SPAN></FONT><o:p></o:p></P>
<P class=MsoNormal><FONT color=#1f497d size=2 face=Arial><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Arial",sans-serif; COLOR: #1f497d'>
<A
href="http://www.rodharmon.com">www.rodharmon.com</A></SPAN></FONT><o:p></o:p></P>
<P class=MsoNormal><FONT color=#1f497d size=2 face=Arial><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Arial",sans-serif; COLOR: #1f497d'>
<A>rodharmon@msn.com</A></SPAN></FONT><o:p></o:p></P>
<P class=MsoNormal style="MARGIN-TOP: 6pt"><FONT size=2 face=Calibri><SPAN
style="FONT-SIZE: 11pt"><o:p></o:p></SPAN></FONT> </P>
<P class=MsoNormal><FONT size=2 face=Calibri><SPAN
style="FONT-SIZE: 11pt"><o:p></o:p></SPAN></FONT> </P>
<P class=MsoNormal><FONT size=2 face=Calibri><SPAN
style="FONT-SIZE: 11pt"><o:p></o:p></SPAN></FONT> </P>
<P class=MsoNormal><FONT size=2 face=Calibri><SPAN
style="FONT-SIZE: 11pt"><o:p></o:p></SPAN></FONT> </P>
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<P class=MsoNormal><B><FONT size=2 face=Calibri><SPAN
style="FONT-SIZE: 11pt; FONT-WEIGHT: bold">From:</SPAN></FONT></B>
wsbarp-bounces@lists.wsbarppt.com <B><SPAN style="FONT-WEIGHT: bold">On Behalf
Of </SPAN></B>Josh Grant<BR><B><SPAN style="FONT-WEIGHT: bold">Sent:</SPAN></B>
Wednesday, June 1, 2022 3:48 PM<BR><B><SPAN
style="FONT-WEIGHT: bold">To:</SPAN></B> wsbar
<wsbarp@lists.wsbarppt.com><BR><B><SPAN
style="FONT-WEIGHT: bold">Subject:</SPAN></B> [WSBARP] REET tax and change of
cotnrolling interest<o:p></o:p></P></DIV></DIV>
<P class=MsoNormal><FONT size=2 face=Calibri><SPAN
style="FONT-SIZE: 11pt"><o:p></o:p></SPAN></FONT> </P>
<DIV>
<DIV>
<DIV>
<P class=MsoNormal><FONT color=black size=4 face=Calibri><SPAN
style="FONT-SIZE: 13.5pt; COLOR: black">Mom and dad own 48% (25% each) of an LLC
with a $1,000,000 parcel of real estate. The kdis own the
rest.</SPAN></FONT><FONT color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black"><o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=MsoNormal><FONT color=black size=4 face=Calibri><SPAN
style="FONT-SIZE: 13.5pt; COLOR: black">Mom and Dad gifted their 48% to the kids
so now the kids each own 25% of the LLC each.</SPAN></FONT><FONT color=black
size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black"><o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=MsoNormal><FONT color=black size=4 face=Calibri><SPAN
style="FONT-SIZE: 13.5pt; COLOR: black">No sale all gifts.</SPAN></FONT><FONT
color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black"><o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=MsoNormal><FONT color=black size=4 face=Calibri><SPAN
style="FONT-SIZE: 13.5pt; COLOR: black">Please confirm that the Controlling
Interest Transfer, in this case where there is no sale.. is not triggered.
</SPAN></FONT><FONT color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black"><o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=MsoNormal><FONT color=black size=4 face=Calibri><SPAN
style="FONT-SIZE: 13.5pt; COLOR: black">Thanks</SPAN></FONT><FONT color=black
size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black"><o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<DIV>
<DIV>
<DIV>
<P class=MsoNormal><STRONG><B><FONT color=#004080 size=5 face=Calibri><SPAN
style='FONT-SIZE: 18pt; FONT-FAMILY: "Calibri",sans-serif; COLOR: #004080'>Joshua
F. Grant</SPAN></FONT></B></STRONG><FONT color=#004080 size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: #004080"><BR></SPAN></FONT><FONT color=black
size=4><SPAN style="FONT-SIZE: 14pt; COLOR: black"><IMG id=Picture_x0020_1
style="HEIGHT: 0.447in; WIDTH: 2.156in" border=0 alt=advocates
src="cid:A4E94D40F9814EEBA5D4B77F4F178A27@JoshPC" width=207
height=43></SPAN></FONT><FONT color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black"><BR></SPAN></FONT><FONT
color=#004080><SPAN style="COLOR: #004080">P. O. Box 619<BR>Wilbur, WA
99185<BR>509 647 5578</SPAN></FONT><FONT color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black"><o:p></o:p></SPAN></FONT></P></DIV></DIV></DIV></DIV></DIV></DIV></DIV>
<P>
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