Avoiding double excise taxation

Just starting wholesaling here in the state of Washington, although I have been a real estate broker for 18 years. In beautiful Washington, each real estate transaction is taxed (payable by seller) an excise tax of 1.78% of the sales price. If I can assign my contract to an investor, the tax will only be paid once.

However, If I am selling to an owner-occupant, I am a little leery about assiging to them, since they may get the idea that I don’t deserve any profit for my work, and try to go behind by back to deal directly with the seller. In that case, I would need to sign one set of closing documents with the original seller, and another set with the eventual buyer, resulting in two taxable transactions (according to escrow companies.) On a $200,000 house, that’s $3560 that could stay in someone else’s pocket (preferably mine.)

Has anyone had experience flipping properties to owner-occupant buyers ? Do they often get greedy, or is this a rare occurrence ? What are good ways around this dilemma ?

Thanks for any clues

Herb in Des Moines (Wa.)

In NY its a transfer tax

My experience, the tax man always gets his piece of the pie.

KEC

Kevin
Thanks for the depressing reminder. Anything is worth a shor though !

HERB

They are greedy…LOL

They even charge me 7.50 per 1000 to record a mortgage not counting the other recording fees.

I’ve just resolved myself to that its just part of the game and rules ya have to play by here in NY. It stinks…Oh well

Good luck to ya…if ya find away…let us all know

KEC