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<p class="MsoNormal">Colleagues,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I was contacted by a real estate investor looking to transfer property owned by two sets of spouses (A and B, a married couple, and C and D, a married couple, as tenants in common) to an LLC where A and C are the sole members. Although
the LLC is considered a community asset, I don’t believe that’s enough to satisfy the DOR when it comes to claiming an excise tax exemption. The options I see are: (1) add B and D to the LLC so A, B, D, and D all have a 25% interest (which may have unintended
consequences); (2) B can transfer her interest in the property to A, and D to C, to create separate property (which may also have unintended consequences); or (3) pay excise tax on the 50% transfer.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I’m wondering if there are other options I have not considered. How do you counsel clients in this circumstance?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thank you,<o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:3.0pt"><b><span style="font-size:13.0pt;font-family:"Cambria",serif;color:#203864;mso-ligatures:none">Inge A. Fordham | Attorney</span></b><span style="font-size:12.0pt;font-family:"Calibri",sans-serif;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:3.0pt"><span style="font-size:12.0pt;font-family:"Cambria",serif;color:black;mso-ligatures:none">Fordham Law, PLLC</span><span style="font-size:12.0pt;font-family:"Calibri",sans-serif;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:3.0pt"><span style="font-size:12.0pt;font-family:"Cambria",serif;color:black;mso-ligatures:none">3218 Sixth Avenue | Tacoma, WA 98406</span><span style="font-size:12.0pt;font-family:"Calibri",sans-serif;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:3.0pt"><span style="font-size:12.0pt;font-family:"Cambria",serif;color:black;mso-ligatures:none">Office: (253) 348-2657 | Mobile: (206) 778-3131</span><span style="font-size:12.0pt;font-family:"Calibri",sans-serif;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:3.0pt"><span style="font-size:12.0pt;font-family:"Cambria",serif;color:black;mso-ligatures:none"><a href="http://www.fordhamlegal.com"><span style="color:#0563C1">www.fordhamlegal.com</span></a></span><span style="font-size:12.0pt;font-family:"Calibri",sans-serif;mso-ligatures:none"><o:p></o:p></span></p>
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