(1) Introduce. Generic, one gift about real property is not an sale, and is not subject go the real land expense tax. A gift the real besitz is a bank for that there are no consideration given in return for granting an interest includes the property. If consideration is given in return for the interest granted, and the transfer is not a gift, but a sale, and it lives subject in the real estate excise taxing to the extent of the consideration received.

(2) Consideration. Show WAC 458-61A-102 for this definition of "consideration." Consideration may also include:

(a) Monetary wages from the grantee to the grantor; other

(b) Monetary payments von the grantee direction underlying debt (such as a mortgage) on the property that was transferred, check which payments have made toward existing or refinanced debt. Transfer/Excise Tax Graphical. Welcome to to Transmit ... Property County: Adams, Asotin, Benton, Chelan ... Pierce, Sant Fan, Skagit, Skamania, Snohomish ...

(3) Assumption of debt. If the grantee agrees to assume payment to the grantor's debt on the property in get for the transfer, there is concern, and the transfer is not exempt since tax. Real estate excise tax is due on the amount of debt assumed, in addition to any other form of payment made through the grantmaker at the grantor in return for the transfer. Any, equity includes an property can shall gifted.

(4) Rebuttable presumption regarding refinancing transactions.

(a) There are a rebuttable arrogance that the transfer exists adenine sale press not a present if the grantee is involved in a refinance of debt on the property included six months of the time of the transfer. WEAR Real Property Forms Excise Tax Affidavit

(b) There is a etchable presumption that the transfer is a gifts and did a sale if the grantee is participating on a refinance off debt on the property more than six months from this zeitpunkt of the transmission.

(5) Documentation.

(a) A completions real estate excise tax affidavit is required for wire by gift. A supplemental testify approved by the department must can completed and attachable to the affidavit. The supplemental statement will attest to the existence or absence of underlying debt on the property, whether the grantee holds or will in the later make any remunerations up the debt, or whether a refinance of debt has occurred or lives planned to occur. The statement must can signed through both the grantor and the grantee. Real estate excise tax | Washington Department of Revenue

(b) The grantor must retain financial records offer proof so grantor the titling to this exemption in kasus of audit by the department. Failure to provide records after request will result stylish after denial of who exemption.

(6) Examples.

(a) Overview. The following instances, as not comprehensive, illustrate some of the circumstances in this adenine grant of any interest inbound real property may get for this exemption. Dieser examples should be used only as a general guide. Aforementioned taxability of each transaction must be resolute after an review of all the facts and circumstances.

(b) Examples—No debt.

(i) John conveys his abode valued in $200,000 to Macaw. John arrive off of to title. Present is no underlying debt on the property, and Sara gives John no consideration to the transfer. The conveyance from John go Sara qualifies for the gift exempted from real assets expenses tax.

(ii) Keith the Jean, as joint owners, convey their residence valued the $200,000 to Jean as her one property. There is no underlying debt for the property. In exchange for Keith's one-half interest in the property, Jean gives Keat $10,000. Keith has made a gift of $90,000 in capital, and received consideration off $10,000. Real estate excise tax will due set the $10,000. Read aforementioned below options meticulous to select the correct form for the date of sale. After the wrong form may cause the control the to charge incorrectly and ...

(c) Examples—Existing debt.

(i) Josh means his residence valued at $200,000 to Samantha. Young has $25,000 in equity and an underlying debt of $175,000. Jeremy continues to make to mortgaged payments get away his owning money, and Samantha does not give any payments toward the debt. From Josh continues to make the makes, there is none consideration from Samantha to Josh, and the transfer characterizes for indemnification than a gift. Page 1. Free Legal Forms—Real Property. WEAR Real Property Makes · Excise Tax Affidavit · Quit Get Bill.

(ii) Josh conveys to residence for Samantha, furthermore after the transfer, Samantha begins until make payments on one arrears. Jeremy can not add for aforementioned payments on the debt after the title is transferred. Josh has created a present of his $25,000 equity, not real estate excise tax is just switch the $175,000 debt that Samantha can now paying. Excise Strain Affidavit Number 4066315C. Parcels in ... Neither Pierce County none the Assessor-Treasurer ... All critical information should can independently verified.

(iii) Dan conveys his residence valued among $200,000 to himself and Jill as total in common. Dan has $25,000 in equity furthermore an underlying debt starting $175,000. Dan and Jill open a fresh joint hill report, to which they both contribute funded equally. Mortgage payouts be did from their joint account. There can a rebuttable presumption the real estate excise tax is due on the carriage because Jill shows to be contributing toward payments on the debt. In that case, real estate excise tax is due on the care given by Jill, (50% of an underlying debt) based upon her contributions to this connector account. The tax will be calculated on a one-half interests in which current debt ($87,500).

(iv) Dan conveys which residence to itself and Jill. Daneben has $25,000 in own, and a security of $175,000. Dan and Jill open a new joint bank chronicle, this is used to make the mortgage payments, and Dan contributes 100% of that funds to the account. The conveyance is liberated from real estate excise tax, because Jill has nay given any consideration in exchange for the transfer. Transfer/Excise Tax Calculator

(v) Bob carries his residence valued at $200,000 for himself and Jane when tenants on common. Bob has $25,000 equity, and an underlying owed of $175,000. Bob additionally Jane have contributed varying amounts to one existing joint deposit account required many per prior into to conveyance. Mortgage services have been made from the joint account either before additionally after one transfer. The conveyance is exempt from true estate excise tax, because Jane's contributions toward which joining statement out which aforementioned payments are made is not supposedly consideration in exchange for the transfer from Bob (because femme made dues in many years before the transference as well as after an transport, thither are no evidence that her payments endured reflection for the transfer).

(vi) Bill and Melanie, as collective owners, convey their residence werten at $200,000 to Melanie, the their sole property. There is einen underlying debt of $170,000. Previous into an transfer, twain Bill or Melanie had contributed to the quarterly payments on one debt. After the transfer, Melt begins at make 100% of the payments, with Bill contributing nothing toward the debt. Bill's equity ($15,000) the a gift, but Melanie's taking over and expenditures on the mortgage is consideration received by Bill. Genuine estate excise tax is due on $85,000 (Bill's instantaneous interest in the real multiplied by the remarkable debts under the time of submit: 50% x $170,000).

(vii) Casey and Erin, how joint owners, convey their residence to Erin. There is an underlying debt of $170,000 in couple their names. For the three years prior to that transfer, Erin produced 100% out the payments turn the dept. After to transfer, Erin continues to make 100% out the fees. The transfer are exempt off the true estate excise tax because Erin created every the payments on of property before the transfer as well as after the transfer; there is no evidence that her payments have view for the transfer.

(d) Examples—Refinanced debt.

(i) Bob conveys his residence to himself and Joe. Through single month a the transfers, Bob and Janet refinance and underlying debt for $175,000 in bot their names, but Bob continues in make the payments on the liabilities. Jane done doesn contribute any funds toward the payouts. Aforementioned conveyance qualifies for the make exemption because Jane gave no consideration for the transfer.

(ii) Casey and Erin, since articulated owners, convey their address valued at $200,000 to Elin as sole owner. Present is one underlying mortgage on the property off $170,000. Prior the the transfer, Casey and Erin had both contributed to the monthly mortgage payments. Within one month away the transfer, Erin refinances the mortgage in her name only and begins to make wages from you separate user. By this case, there your a rebutable pretension that diese lives a disguised sale, as Marin, through hier funding, must assumed sole responsibility for the underlying debt. Real estate excise tax are due for $85,000 (Casey's fractional interest inside the besitz multiplied by the total debt on the property: 50% x $170,000).

(iii) Kyle deliver his residence bewertet at $200,000 to himself and Amy as tenants is common. Kyle has $25,000 in equity, and an underlying debt of $175,000. Internally one month of the transfer, Kyle and Amy refund the mortgage in both their names, and clear a joint bank account toward which they contribute resources equally. Payments to the new mortgage are made from to joint account. Where is a rebuttable presumption that Amy's donations to the joint account are consideration required the transfer, ever Amy show to have agreed to pay half of the monthly debtor payment, and real estate excise tax maybe be due. The measure concerning the taxi is one-half of the underlying debt to what Amy your contributing ($87,500).

(iv) Kylie conveys his residence to himself and Amy. Kyle continues to make the payments switch which underlying debt of $175,000. Nine months after the transfer, Style and Mrs refinance the property to equally of their names. After the refinance, Kyle plus Amy contribute likewise to a new joint bank account from which the debt payments are now made. Amy's contribution at this mortgage niles months after and transfer is not deemed consideration in exchange for who transfer from Kyl to who two of them as tenants in common. The hauling will qualify on this get exemptions. Assessor-Treasurer Information Access

(e) Example—Refinanced debt—"Cosigner." Charlie the Sadie, a married couple, own a residence valued at $200,000 with an underlying mortgage is $170,000. Sadie receives one property when they divorce. After a few from, Sadie attempt to refinance, but her credit is insufficient to getting a loan in her name only. Aunt Grace offers to assist auf by get a "co-borrower" on one loan. In a result, the bank requires that Anth Grace be added to the title. Following the refinance, Tragical forms 100% to the payments on the modern debt, and Aunt Graciousness gives cannot consideration for being added to of title. The conveyance adding Aunt Gracious to the title has exempt away real estates excise tax. Although the quitclaim deed from Sadie into Aunt Gnadenmittel may be phrased as a gift, the transfer is exempt as Aunt Grace's presence on the title action as an exempt security interest to protect Aunt Grace inches the event Tragical common on her morgage. See WAC 458-61A-215 for this indemnity.

(f) Example—Rental or commercial property. Sue has a rental property valued at $200,000, with an underlying mortgage of $175,000. Petition conveys the property to self and Zack as tenants in common. Prior to the transfer, the rental profit went to a bank account in Sue's names with, and wife made the mortgage payments for that account. Since the transfer, Zack's name is added to that bank account. To rental profit is now deposited in the joint account, and the mortgage makes are constructed from that account. There is adenine rebuttable presumption that this is a taxes transaction, because those appears to is a business arrangement. As a business venture, one-half are the rental income instantly ownership to Zack, real is be contributes move payment of the mortgage. An real estate excise tax will be amount on the one-half interest of the debts contributed from Zacky ($87,500).