Date: Tue, 7 Nov 2006 13:02:34 -0500
Take a look at Pennsylvania Department of Revenue Private Letter Ruling No.
RTT-02-013, which references Pennsylvania Department of Revenue Private
Letter Ruling No. RTT-00-005. Both are Like-Kind Exchange / Realty Transfer
Tax rulings.
These PLRs should be on the PA Dept of Rev Website.
Hope they are helpful.
Frank
* * * * * * * * * * * * * * * * * * * *
Frank J. Matune, Esq.
Nadler Nadler & Burdman Co., LPA
20 Federal Plaza West
Suite 600
Youngstown, Ohio 44503
330-744-0247
330-744-8690 (fax)
fjmatune_at_nnblaw.com <blocked::mailto:fjmatune_at_nnblaw.com>
* * * * * * * * * * * * * * * * * * * *
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From: realproperty-bounce_at_list.pabar.org
[mailto:realproperty-bounce_at_list.pabar.org] On Behalf Of Andrea Geraghty
Sent: Tuesday, November 07, 2006 11:58 AM
To: realproperty_at_list.pabar.org
Cc: wdupont_at_dellaw.com
Subject: [realproperty] FW: [probatetrust] Realty tfr tax exemption vs. 1031
exchange
See below email from Probate list. Someone on our side should be able to
answer this for Will.
Andrea Geraghty
Attorney at Law
Two Gateway Center
603 Stanwix Street . Suite 2050
Pittsburgh, PA 15222
<BLOCKED::http://www.geraghtylaw.net/> http://www.geraghtylaw.net
e ageraghty_at_geraghtylaw.net
p 412-232-7070
f 412-232-7071
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From: probatetrust-bounce_at_list.pabar.org
[mailto:probatetrust-bounce_at_list.pabar.org] On Behalf Of Will du Pont
Sent: Tuesday, November 07, 2006 11:04 AM
To: probatetrust_at_list.pabar.org
Subject: [probatetrust] Realty tfr tax exemption vs. 1031 exchange
Here's one that is a little out of our bailiwick, but maybe some of you have
experience in this particular aspect of PA Realty Transfer Tax law or can
point me to a listserve for the real estate bar (or dirt lawyers as Andrea
G. calls them).
I recently acquired a "replacement" rental property (in DE) and transferred
ownership of three "relinquished" properties to a shell LLC in order to
accommodate an IRS section 1031 reverse, deferred exchange. When I
transferred title to two PA properties to the LLC, I claimed RTT exemption
as a transfer from principal to agent or straw party, per section
1102-C.3(11)(i) of the PA Realty Transfer Tax Act. I negotiated the sale of
the two properties to my tenants, but used the LLC (which I created but is
wholly owned by a professional exchange agency) as the intermediary.
PA is saying that my transfer to the intermediary is a taxable transfer for
RTT purposes and pointed me to Rev. Bulletin RTT 2006-1. I say that flies
in the intent of exempting transfers to straw parties for the purpose of
accommodating a sale/exchange.
Of course, the sale to the tenant by the intermediary is taxable, but it
doesn't seem right to tax the "sale" twice. Any help? Thanks.
--Will du Pont
William B. du Pont Jr.
Herdeg, du Pont & Dalle Pazze, LLP
1201 Orange Street, Suite 500
Wilmington, DE 19801-1140
(302) 655-6500
<file:///\\www.lawyers.com\dellaw> www.lawyers.com/dellaw
wdupont_at_dellaw.com
