rcw: [UPDATE] State of WA Dept. of Revenue Backs Down on New Short Sale Tax
- 01/21/09 10:23 AM
On Jan. 12, 2009, a new memo came out from Stuart Thronson, Assistant Director, Special Programs Division of the Department of Revenue with the Subject "Application of the Real Estate Excise Tax on 'Short Sales'." In this memo he clarified that Real Estate Excise Tax (REET) would not be charged to the Seller based on the amount of debt relief the seller received from the Lender as part of the short sale process. He acknowledged that this relief was something negotiated between the Seller and the Lender and was not a consideration received in some way from the Buyer. In addition … (1 comments)
rcw: Taxing of Short Sale 'Phantom Income'- Confusing, Unfair and a Misinterpretation
- 01/12/09 12:00 PM
Summary: the Washington Department of Revenue (“the Department”) has stated that Sellers doing short sales must pay excise tax on the amount of their forgiven debt. As a former tax attorney and currently active real estate agent in the State of Washington (“Washington”), I oppose this on three grounds- (1) It’s a misinterpretation of the applicable Washington Statute. (2) It’s poorly thought out and will be difficult to apply fairly (including knowing where ‘the buck stops’- seller, buyer, lender or escrow company) (3) It’s will have a chilling effect on short sales, including sales already in progress … (2 comments)
On Jan. 12, 2009, a new memo came out from Stuart Thronson, Assistant Director, Special Programs Division of the Department of Revenue with the Subject "Application of the Real Estate Excise Tax on 'Short Sales'.";)
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