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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72" style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal>Listmates,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Co-habitants go on title of property together but only one of them (“Borrower”) is liable on the note due to the lender. Borrower makes payments on the loan directly while the other co-habitant (“Ex”) makes payments to the Borrower for half of the loan payment. There is nothing in writing expressly stating that Ex is indebted to Borrower for 50% of the mortgage payment, but that is essentially what Ex pays to borrower for several years. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Borrower and Ex call it quits and wish to remove Ex from title. There is some equity in the property now. Borrower is willing to pay Ex 50% of the equity value and excise tax would be due on that amount. I am questioning whether excise tax should also be due on 50% of the underlying debt given that the Ex was never personally liable on the note due to the bank. It could appear to someone as though Ex was liable to Borrower for half the mortgage and has now been relieved of that liability. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Have you dealt with this before? Would excise tax only be due on the value of the equity that Borrower pays Ex for? What exemptions apply? Thanks for the input.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Sam<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Samuel M. Meyler</span></b><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Meyler Legal, PLLC </span></b><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>1700 Westlake Ave. N., Ste. 200<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Seattle, Washington 98109</span><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Tel:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> 206.876.7770<o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Fax:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> 206.876.7771<o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Email:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> </span><a href="mailto:samuel@meylerlegal.com"><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>samuel@meylerlegal.com</span></a><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> </span><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>NOTICE:</span></b><o:p></o:p></p><p class=MsoNormal><span style='font-size:8.0pt;font-family:"Arial",sans-serif;color:blue'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:8.0pt;font-family:"Arial",sans-serif;color:blue'>This electronic message contains information which may be Confidential or Privileged and constitutes an electronic communication within the meaning of the Electronic Communications Privacy Act 18 USC 2510. The information is intended to be for the use of the individual or entity named above. If you are not the intended recipient, please be aware that any disclosure, copying, distribution or use of the contents of this information is prohibited. If you received this transmission in error, please notify the sender and delete the copy you received together with any attachments. Thank you.</span><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>