Partition by tenants in common

From the 2024 DOR Tax Exemption Study

WAC 458-61A-204 Tenants in common and joint tenants. (1) Intro- duction. The real estate excise tax does not apply to the transfer of real property that results in the creation of a tenancy in common or joint tenancy with or without right of survivorship if no considera- tion passes otherwise. See WAC 458-61A-201, Gifts. (2) Partition. The partition of real property by tenants in com- mon or joint tenants, by agreement or as the result of a court decree, is not subject to real estate excise tax. A partition results when tenants in common agree that certain tenants will be assigned certain particular tracts within the property that they own together. Trans- fers to partition real property are not subject to the real estate ex- cise tax provided that the transfer is without additional considera- tion passing. (3) Examples. The following examples, while not exhaustive, il- lustrate some of the circumstances in which a grant of an interest in real property may qualify for this exemption. These examples should be used only as a general guide. The taxability of each transaction must be determined after a review of all the facts and circumstances. (a) Betsy, Haley, and Kalli own five rive