From: "McCaffrey, Carlyn" < To: "Jeffrey Epstein ([email protected])" ccjeervacation(dismail.com> Subject: FYI Date: Fri, 07 Feb 2014 17:26:56 +0000 Inline-Images: image019.png; image020.png; image021.png; image022.png; image023.png; image024.png; image025.jpg; image026.png; image027.png Transfers of Property Between Settlor and Grantor Trust Subject to New York Sales Tax Citations: TSB-A-14(6)S; Petition No. S131007A Summary by IIIIKailalysts The New York State Department of Taxation and Finance explained that when a settlor transfers property to a grantor trust or a revocable living trust in exchange for trust property, the transfer is subject to sales tax because an exchange has been made between two separate entities, even if there is no negotiation and the transfer is not supported by consideration. Full Text Published by taxanalystS Sales Tax January 29, 2014 ADVISORY OPINION The Department of Taxation and Finance received a Petition for an Advisory Opinion from ' name and address redacted " ' . Petitioner requests guidance on whether the substitution of property between himself and the trust is subject to sales and use taxes in New York. We conclude that the Petitioner and the trust are separate taxpayers capable of entering into a sale. Any substitution of property between the two entities would be a sale, because it would constitute a transfer of title or possession for consideration. Therefore, sales and use taxes are due on any substitution of property transferred between the Petitioner and the trust. Facts Petitioner (the "Settlor") created an irrevocable trust (the "Trust") pursuant to a trust agreement between the Trustees and the Settlor. The Settlor is deemed to own the Trust property for Federal and New York State income tax purposes, as provided in §§ 671-679 of the Internal Revenue Code (IRC). Under the terms of the Trust Agreement, the Settlor has the administrative right to reacquire trust property by substitu