Tag: Real Estate
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Long-Term Rentals Are Not Subject to Washington’s B&O Tax
If you rent out residential or commercial real estate in Washington on a long-term basis, that rental income is not subject to the state’s business and occupation (B&O) tax—or to retail sales tax. The exemption is well established, but it is narrower than many owners assume: it turns on how long the tenant stays and…
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Understanding Washington’s Real Estate Excise Tax Exemptions
Buying or selling real estate in Washington typically triggers the obligation to pay Real Estate Excise Tax (REET) on the sale price. This tax is imposed on the seller and can represent a significant cost in any property transfer. However, not every transfer is a taxable “sale.” Washington law, specifically RCW 82.45 and the corresponding…