To: Jeffrey Epstein(jeevacation©gmail.comj From: McGraw, Thomas Sent Wed 1/30/2013 11:03:08 PM Subject: RE: happy new year Been at offsite & just looking at your e-mail I think not. NY tax law incorporates by reference federal tax law as starting point and then makes various modifications. In brief review I see no changes under NY sales & use tax statutes that would trump/modify otherwise applicable fed law including grantor statutes incorporated into NY tax law. Hence substitution of identical value in grantor should not create a "sale" transaction or event for sales tax to apply. From: Jeffrey Epstein [mailto:jeevacation@gmail.com] Sent: Saturday, January 26, 2013 8:58 AM To: McGraw, Thomas Subject: happy new year if i excahnge art held in his own name for stock held in the trst , do i have a sales tax. it is not a purchase-- as it is under a right of substituion of collateral provision, it is a defe gran trust so to capital gain, , if i put it in a partnership with wife first and cxcahnge part interests,? no sales tax? The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to jccvacationegmail.com and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA_R1_00341030 EFTA01907179