RE: FW: Re:
so that the trust pays? then if leon wantss to substitutiie cash he pays. i am aware of 1031 but I spoke to a calif sales tax person and she said not under substruion provision. but could not point to authority either
understood, Im in search of authority, if he had put the art in day one, there wouldn't be a sales tax. on contribution to the grat. would there have been on the pourover.? is there case law , ? my accts agree with me, but i pay them . so i discount it
Can you find any authority under the NY sales tax law that;
A sale between a grantor trust and its grantor is either subject to or not subject to the sales tax. or
If a grantor retained annuity trust is funded with art and the annuity payments to the grantor are subsequently funded with interests in that same art that:
a. the transfer to the grantor annuity trust is either subject to or not subject to the sales tax
b. the annuity payments made with interests in the art are either subject to or not subject to the sales tax
I know there is authority that grantor retained annuity payments funded with real estate interests will be subject to the real property transfer tax.
If you don't know what a grantor retained annuity trust is you can call either me, Elyse or Amy and we'll explain it.
Carlyn S. McCaffrey I Partner
Carlyn S. McCaffrey | Partner
McDermott Will & Emery LLP | 340 Madison Avenue, New York, NY 10173
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Sale or exchange is a term used in tax law to refer to a transaction in which value is received, triggering a gain or loss for income tax purposes. A sale or exchange is distinguished from inheritance, gifts, or other transactions in property which do not result in a calculable gain or loss.
ok, however nystate follows most definitions from federal , talk tomorrrw , sorry to torture you
Yes - the trust pays and then leon would pay if he took it back.
Remember when you're thinking about this issue that it's not really a substitution power. We refer to it as that but if you look at the trust language, you will see that that's not what it says. It says that the settlor has the power to reacquire and acquire trust property by substituting therefore other property of an equivalent value.
A lively exchange with you is never a torture.
Carlyn S. McCaffrey | Partner
McDermott Will & Emery LLP | 340 Madison Avenue, New York, NY 10173
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