EFTA02401956

From: McCaffrey, Carlyn < Sent: Thursday, January 31, 2013 9:32 PM To: Jeffrey Epstein Cc: Heller, Amy; Yopp, Mark; Kirschner, Elyse Subject: FW: Re: Here's a =hought from Amy Heller, one of my partners. Carlyn S. McCaffreywww.mwe.com <=pan style=lont-size:10.0pt;font-family:"Tahoma","sans-serif"'>From: =eller, Amy Sent: Thursday, January 31, 2013 4:29 PM To:</=> McCaffrey, Carlyn Subject: RE: Re: =/div> <=span> Amy E. Heller McDermott Will & Emery LLP I 3=0 Madison Avenue, New York, NY 10173 (p) <=pan +style=lont-size:10.0ptfont-family:"Arial","sans-serif";color:bluel= I (f) I I =/span>www.mwe.com +<http://www.mwe.com> From: McCaffrey, Carlyn Sent: Thursday, January 31, 2013 4=24 PM To: Yopp, Mark Cc: Rosen, Arthur; Heller, Amy; K=rschner, Elyse Subject: FW: Re: Can =ou find any authority under the NY sales tax law thats/=> EFTA_R1_01439060 EFTA02401956 1. A sale between a grantor trust and its grantor is eithe= subject to or not subject to the sales tax. or 2. If a grantor retained annuity trust is funded with art a=d the annuity payments to the grantor are subsequently funded with interes=s in that same art that: =o:p> &=bsp; a.&=bsp; the transfer to the grantor annuity trust is either subject to or not=subject to the sales tax =o:p> &=bsp; b. =he annuity payments made with interests in the art are either subject to o= not subject to the sales tax I know there i= authority that grantor retained annuity payments funded with real estate =nterests will be subject to the real property transfer tax. If you don't know what a grantor retained annuity trust is =ou can call either me, Elyse or Amy and we'll explain it. Carlyn S. McCaffrey I P=rtner McDermott Will & Emery LLP I 340 Madison Avenue, New =ork, NY 10173 <mailto > I www.mwe.com From: J=ffrey Epstein (mailto:jeevacation=gmail.com <mailto:[email protected]> Sent: Thursday, January 31, 2013 4:11 PM T=: McCaffrey, Carlyn Subject: Re: Re: </=iv> On Th., Jan 31, 2013 at 5:05 PM, McCaffrey, Carlyn < <mailto wrote:=/p> Yes - the trust pays and then leon would pay if=he took it back. > > 2 EFTA_R1_01439061 EFTA02401957 Remember when you're thinking about this issue that it'= not really a substitution power. We refer to it as that but if you =ook 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 pro=erty by substituting therefore other property of an equivalent value. Carlyn S. McCaffrey I Partner McDermott Wi=I & Emery LLP I 340 Madison Avenue, New York, NY 10173 I </=pan <mailto <http://www.mwe.com= target=> &nbs=; From: Jeffrey Epstein (mailto:[email protected]</=>J Sent: Thursday, January 31, 2013 4:03 PM To: McCaf=rey, Carlyn Subject: Re: > I www.mwe.com 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<=p> On Thu, Jan 31, 2013 at 4:56 PM, McCaffrey, Carlyn g=; wrote: the person who pays the sal=s 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 inve=tment purposes and make a section 1031 exchange, I pay sales tax. If=l make a second 1031 exchange, I pay another sales tax, etc.</=:p> <=>Carlyn S. McCaffrey I Partner McDermott Will & =mery LLP 1340 Madison Avenue, New York, NY 10173 <te I From: Jeffrey Epstein (mailto:[email protected] =b>Sent: Thursday, January 31, 2013 3:45 PM To: McCaffrey, Ca=lyn 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 t=e seller and the settlor the buyer? The informa=ion contained in this communication is confidential, may be attorney-cl=ent privileged, may constitute inside information, and is intended only=for the use of the addressee. It is the property of Jeffrey Epstein =br>Unauthorized use, disclosure or copying of this communication or any=part thereof is strictly prohibited 3 EFTA_R1_01439062 EFTA02401958 and may be unlawful. If you have re=eived this communication in error, please notify us immediately by r=turn e-mail or by e-mail to [email protected] <mailto:[email protected]> , and destroy this communication a=d all copies thereof, including all attachments. copyright -all rights =eserved IRS Circular 230 =isclosure: To comply with requirements imposed by the IRS, we inform you t=at any U.S. federal tax advice contained herein (including any attachments=, unless specifically stated otherwise, is not intended or written to be u=ed, and cannot be used, for the purposes of (i) avoiding penalties under t=e Internal Revenue Code or (ii) promoting, marketing or recommending to an=ther party any transaction or matter herein. This message =s a PRIVILEGED AND CONFIDENTIAL communication. This message and all attach=ents are a private communication sent by a law firm and may be confidentia= or protected by privilege. If you are not the intended recipient, you are=hereby notified that any disclosure, copying, distribution or use of the i=formation 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. =**** ******** ** ***** *• *** ******* **•***•** ***** **• ** ****************** **•***= *********** ***S** Please visit http://www.mwe.com/ for more information about our Firm.<=span> rrrr_ The information =ontained in this communication is confidential, may be attorney-client =rivileged, may constitute inside information, and is intended only for<=r>the use of the addressee. It is the property of Jeffrey Epstein U=authorized use, disclosure or copying of this communication or any part=thereof is strictly prohibited and may be unlawful. If you have receive= this communication in error, please notify us immediately by return=e-mail or by e-mail to [email protected] <mailto:[email protected]> , and destroy this communication and al= copies thereof, including all attachments. copyright -all rights reser=ed confidential, may be=attorney-client privileged, may constitute inside information, and is i=tended only for the use of the addressee. It is the property of Jeff=ey Epstein 4 EFTA_R1_01439063 EFTA02401959 Unauthorized use, disclosure or copying of this communic=tion or any part thereof is strictly prohibited and may be unlawful. If=you have received this communication in error, please notify us immedia=ely by return e-mail or by e-mail to [email protected] <mailto:[email protected]> , and destroy this com=unication and all copies thereof, including all attachments. copyright =all rights reserved 5 EFTA_R1_01439064 EFTA02401960