Washington DOR Finds Transfer of Ownership Interest Wasn’t Exempt From Real Estate Excise Tax

The Washington Department of Revenue (DOR), Administrative Review and Hearings Division, Sept. 21 found Taxpayers weren’t entitled to a real estate excise tax (REET) exemption. Taxpayers transferred real property to a former business partner and tenant in common by a quitclaim deed, in exchange for debt relief. Taxpayers submitted a REET affidavit, claiming that the transfer was tax exempt because it wasn’t a sale of real property, but instead was a partition of property among tenants in common or a mere change in identity. However, the DOR assessed REET. Taxpayers sought review of the assessment. The DOR noted: 1) the ...