EFTA01907166

To: Jeffrey Epsiliailinail.com] Cc: Yopp, Mark From: McCaffrey, Carlyn Sent Thur 1/31/2013 10:16:57 PM Subject RE: FW: Re: Yes - that 's the problem and that's the position that the state tax commission has taken in the real property transfer tax arena Carlyn S. McCaffrey I Partner McDermott Will & Eme LLP 1340 Madison Avenue New York, NY 10173 From: Jeffrey Epstein [mailto:[email protected]] Sent: Thursday, January 31, 2013 5:12 PM To: McCaffrey, Carlyn Subject: Re: FW: Re: thanks, he is acting in only one capacity, settlor, a sale to a grantor trust usually involves either a third party trustee , or if not- if its the same person he is still a trustee, they can make the argument two seperate roles an distinct entities, even though disregarded for federal tax purposes On Thu, Jan 31, 2013 at 5:56 PM, McCaffrey, Carlyn wrote: A lively exchange with you is never a torture. Carlyn S. McCaffrey i Partner McDermott Will & Emery LLP 1340 Madison Avenue. New York, NY 10173 From: Jeffrey Epstein [mailto:jeevacelion(6amail.com] Sent: Thursday, January 31, 2013 4:50 PM To: McCaffrey, Carlyn Subject: Re: FW: Re: ok, however nystate follows most definitions from federal , talk tomorrrw , sorry to torture you On Thu, Jan 31, 2013 at 5:46 PM, McCaffrey, Carlyn wrote: EFTA_R1_00341012 EFTA01907166 The term "sale or exchange" is a term used in the federal income tax law to refer to such a transaction. There's no identical description in the NYS sales tax law. Mark, Please email us the basic definition of a sale for purposes of the NYS sales tax law. Carlyn S. McCaffrey Partner McDermott Will & Emery LLP 1340 Madison Avenue, New York, NY 10173 From: Jeffrey Epstein [mailto:ieevacationamail.com] Sent: Thursday, January 31, 2013 4:43 PM To: McCaffrey, Carlyn Subject: Re: FW: Re: 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. On Thu, Jan 31, 2013 at 5:31 PM, McCaffrey, Carlyn wrote: Here's a thought from Amy Heller, one of my partners. Carlyn S. McCaffrey I Partner McDermott Will & Emery LLP 1340 Madison Avenue, New York, NY 10173 From: Heller, Amy Sent: Thursday, January 31, 2013 4:29 PM To: McCaffrey, Carlyn Subject: RE: Re: Can you put the art and possible some liquid assets in an LIC? EFTA_R1_00341013 EFTA01907167 Amy E. Heller McDermott Will & Emery LLP 1340 Madison Avenue. New York. NY 10173 From: McCaffrey, Carlyn Sent: Thursday, January 31, 2013 4:24 PM To: Yopp, Mark Cc: Rosen, Arthur; Heller, Amy; Kirschner, Elyse Subject: FW: Re: Can you find any authority under the NY sales tax law that; 1. A sale between a grantor trust and its grantor is either subject to or not subject to the sales tax. or 2. 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 McDermott Will & Emery LLP 1340 Madison Avenue, New York, NY 10173 EFTA_R1_00341014 EFTA01907168 From: Jeffrey Epstein [mailto:[email protected]] Sent: Thursday, January 31, 2013 4:11 PM To: McCaffrey, Carlyn Subject: Re: Re: 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 On Thu, Jan 31, 2013 at 5:05 PM, McCaffrey, Carlyn > wrote: 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. Carlyn S. McCaffrey I Partner McDermott Will & Emery LLP I 340 Madison Avenue, New York, NY 10173 From: Jeffrey Epstein [mailto:jeevacationgmail.corn] Sent: Thursday, January 31, 2013 4:03 PM To: McCaffrey, Carlyn Subject: 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 On Thu, Jan 31, 2013 at 4:56 PM, McCaffrey, Carlyn wrote: the person who pays the sales tax is the person who is acquiring the tangible personal property, i.e., the paintings. yes - it could happen multiple times just like it can happen with individuals. If, for example, I hold a painting for investment purposes and make a section 1031 exchange, I pay sales tax. If I make a second 1031 exchange, I pay another sales tax, etc. EFTA_R1_00341015 EFTA01907169 Carlyn S. McCaffrey I Partner McDermott Will & Emery LLP 1340 Madison Avenue. New York. NY 10173 From: Jeffrey Epstein [mailto:jeevacationftmaiLcom] Sent: Thursday, January 31, 2013 3:45 PM To: McCaffrey, Carlyn Subject: my irs people , also now can't see substitution provision causing sales tax , as it could happen multiple times over the life of the trust, setllor could not be liable for sales tax , or is the trust the seller and the settlor the buyer? 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 jeevacation@gmail coin, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved *************Orte*******. Mit*** ******** IRS Circular 230 Disclosure: To comply with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained herein (including any attachments), unless specifically stated otherwise, is not intended or written to be used, and cannot be used, for the purposes of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter herein. This message is a PRIVILEGED AND CONFIDENTIAL communication. This message and all attachments are a private communication sent by a law firm and may be confidential or protected by privilege. If you are not the intended recipient, you are EFTA_R1_00341016 EFTA01907170 hereby notified that any disclosure, copying, distribution or use of the information contained in or attached to this message is strictly prohibited. Please notify the sender of the delivery error by replying to this message, and then delete it from your system. Thank you. Please visit http://www.mwe.com/ for more information about our Firm. 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 [email protected], and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved 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 [email protected], and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA_R1_00341017 EFTA01907171 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 c-mail or by e-mail to [email protected] and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved 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 [email protected], and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved 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 c-mail or by e-mail to [email protected] and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA_R1_00341018 EFTA01907172