Washington DOR Finds Taxpayers Qualify for Real Estate Excise Tax Exemption

The Washington Department of Revenue (DOR), Administrative Review and Hearings Division, determined that the grantors were exempt from real estate excise tax (REET) on their transfer of property to their daughter. The grantors had co-signed a mortgage with their daughter to help her purchase a property, with the condition that they be on the property title, but later quitclaimed their interest when the daughter refinanced in her own name. The DOR found that no exchange of consideration occurred, as the daughter made all payments and bank records confirmed the parents did not contribute funds, qualifying the transfer for the exiting ...