Washington DOR Grants Taxpayer Real Estate Excise Tax Refund for Divorce Settlement Transfer

The Washington Department of Revenue (DOR), Administrative Review and Hearings Division, granted the taxpayer’s petition for a refund of a real estate excise tax assessment. The dispute involved a transfer of real property pursuant to a divorce settlement decree. The spouse initially transferred her interest in the property to her wholly owned LLC for liability protection, and later the LLC quitclaimed its interest to the husband after he satisfied the debts owed to the wife per the decree. The court found that although the transfer did not strictly comply with the decree’s terms, it was merely a clearing of title ...