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<p class="MsoNormal">I have done several of these except the entity redeems the interest of a LLC member and distributes an undivided interest in the property to the retiring member proportionate to the ownership interest in the LLC and then the LLC purchased
that property interest from the member and paid excise tax on purchase price of property and when the llc filed its annual statement with the Sec of State it answered the interest transfer question by stating the truth that no ownership interest in the entity
was transferred.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Bryce H. Dille<o:p></o:p></p>
<p class="MsoNormal">Dille Law, PLLC<o:p></o:p></p>
<p class="MsoNormal">2010 Caton Way SW Ste. 101<o:p></o:p></p>
<p class="MsoNormal">Olympia, WA 98502<o:p></o:p></p>
<p class="MsoNormal">Office: 360-350-0270<o:p></o:p></p>
<p class="MsoNormal">Cell: 253-579-5561<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif;color:black"><img width="147" height="39" style="width:1.5312in;height:.4062in" id="yiv4204109992_x005f_x0000_i1027" src="cid:image001.png@01D94B88.1601C330" alt="R_Alan_Swanson-WH-200"></span><o:p></o:p></p>
<p class="MsoNormal">** Please note that I use the dictation feature of my iPhone and that sometimes everything I say does not get properly translated**<o:p></o:p></p>
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<p class="MsoNormal">This transmission contains confidential attorney-client communications and may not be disclosed to any person but the intended recipient(s). If this matter is transmitted to you in error, please notify the sender immediately. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Business Entity Creation and Management, Business, Government and Tax Law, Real Estate and Land Use, Residential, Commercial and Condominium Development Real Estate and Commercial Transactions & Closings, Including Performing Services as
IRS Section 1031 Exchange Facilitator Estate Planning, including Wills and Trusts, and Probate Administration Representation Homeowners/Condominium Association Real Estate Developments Real Property Foreclosures and Forfeitures.<o:p></o:p></p>
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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>Craig Gourley<br>
<b>Sent:</b> Tuesday, February 28, 2023 2:23 PM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBARP] Real Estate Excise tax - step transactions<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Listmates, As we all know transfer of a controlling interest in an entity generates excise tax on the value of the entire property, not just the part being transferred. One obvious solution when one “ partner” wants to buy the other out
is to dissolve the entity, distribute the asset to the owners as tenants in common ( mere change in form of ownership) and then have the owner sell their interest to the other TIC. Has anyone seen DOR audit this and try to collapse the transaction to get
tax on the full value of the property rather than just the part being transferred? Thanks, Craig<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b>GOURLEY LAW GROUP</b><o:p></o:p></p>
<p class="MsoNormal"><b>THE EXCHANGE CONNECTION</b><o:p></o:p></p>
<p class="MsoNormal"><b>SNOHOMISH ESCROW </b><o:p></o:p></p>
<p class="MsoNormal">P.O. Box 1091<o:p></o:p></p>
<p class="MsoNormal">Snohomish, WA 98291<o:p></o:p></p>
<p class="MsoNormal">PH: (360) 568-5065 (800) 291-8401<o:p></o:p></p>
<p class="MsoNormal">Fax: (360) 568-8092 <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
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