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<p class="MsoNormal"><a name="OLE_LINK1"></a><a name="OLE_LINK2"><span style="mso-bookmark:OLE_LINK1">I have a client who sold his rights to lease a lake resort. There are several building which he built on US government land, which, at the end of a lease
would apparently go to the US government. In the sale allocation part of the contract the buyer and seller did not allocate any of the sale price to the buildings. All they had was a $150,000 allocated (out of $640,000) for “equipment”.<o:p></o:p></span></a></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1">Anyone indicate if a REET tax is owing on the sale of leasehold interests in buildings and what proof of value would need to be attached to a REET form on which
the tax would be based?<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1">Thanks.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><b><span style="font-size:18.0pt;color:#004080">Joshua F. Grant</span></b></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-size:14.0pt;color:#004080"><br>
</span></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-size:14.0pt;color:black"><img width="166" height="34" style="width:1.725in;height:.3583in" id="Picture_x0020_2" src="cid:image001.png@01D93A42.5E398220"><br>
</span></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="color:#004080">P. O. Box 619<br>
Wilbur, WA 99185<br>
509 647 5578<o:p></o:p></span></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="color:#004080">jgrant@advocateslg.com</span></span></span><span style="color:#004080"><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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