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<p class="MsoNormal">I had a similar transaction some years ago. We claimed the “no change in beneficial interest” exemption. DOR challenged it. We produced copies of the K-1’s issued by the LLC showing that beneficial ownership had not in fact changed. DOR
accepted that and closed the file. That was many years ago, so who knows what they’d do these days given their more aggressive posture on exemption audits.<o:p></o:p></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt">Paul S. Drayna</span></b><span style="font-size:10.0pt"> |
<b><span style="color:#4472C4">Helsell Fetterman LLP</span><span style="color:#2F5496"><o:p></o:p></span></b></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt">Attorney | Of Counsel<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt">800 Fifth Avenue, Suite 3200<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt">Seattle, WA 98104<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt">Direct: 206.689.2177<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt"><a href="mailto:pdrayna@helsell.com"><span style="color:#0563C1">pdrayna@helsell.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt"><a href="http://www.helsell.com"><span style="color:#0563C1">www.helsell.com</span></a><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">From:</span></b><span style="font-family:"Calibri",sans-serif;mso-ligatures:none"> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>mikej@riachgese.com<br>
<b>Sent:</b> Wednesday, November 20, 2024 5:20 PM<br>
<b>To:</b> wsbarp@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBARP] Excise Tax Question<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b><span style="font-size:12.0pt;color:red;mso-ligatures:none">[EXTERNAL MESSAGE]</span></b><span style="font-size:12.0pt;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal">Excise Tax Gurus,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">PC and spouse own home 50/50 they want to transfer home to Washington LLC. The WA LLC is wholly owned by their Wyoming LLC which is owned 50/50 by PC and spouse.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">There is debt on the home, which lender will not call due.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Does the transfer of the home to the WA LLC change the beneficial interest such that excise tax will be owed, or is there no real change in beneficial interest because the WY LLC is 50/50?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Michael P. Jacobs<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Riach Gese Jacobs, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">7331 196th St. SW | PO Box 1067 | Lynnwood, WA 98036
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Phone: (425) 776-3191 | Fax: (425) 425-775-0406
<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="mso-ligatures:none">REPRESENTING OUR COMMUNITY SINCE 1959<o:p></o:p></span></p>
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