Washington State Real Estate Excise Tax exemptions?

[Jack B.]

Has anyone read through the RCW to find the exemptions or otherwise found an article that lists the exemptions? From what I see foreclosure, transfer to family members under specific circumstances and transfers of "devise" are exempt. Since I wouldn't be selling to family or letting it get foreclosed on, none of those apply to me. But the devise one might, as I plan to 10-31 exchange the property.

I'd either 10-31 in state OR out of state. I suspect if I do it out of state there is no exemption, but I'm sure someone here has run into this before.

[Steve Vaughan]

As far as I know, any arms-length change of ownership gets hit.  1031 or no, title has transferred and the state will get theirs.

What I have done is keep my ownership (membership) % below 50% in my commercial property LLCs. If less than 50% changes hands in a calendar year, there is no excise tax. My wife and I each own 48%, my 2 minor boys 2% each. There is no age minimum for WA LLC members. We can sell the LLC over 3 calendar years with no excise tax. Right now that would be a savings in the 10s of thousands. It may not work out all as planned one day, but I set it up this way as an option to us because of the WA excise transfer tax @Jack B.