EFTA02401988.pdf

From: McCaffrey, Carlyn < Sent: Thursday, January 31, 2013 9:43 PM To: Yopp, Mark Cc: Jeffrey Epstein; Rosen, Arthur, Kirschner, Elyse; Heller, Amy Subject: FW: FW: Re: Mark, <= class=MsoNormal>while you're researching this issue, please also=see if there's any authority for imposing a sales tax on the foreclosure o= a lien on tangible personal property when the foreclosure results in the =ender taking title. =span style=lont-size:10.0pt;font-family:"Arial","sans-serir;color:navy=>Carlyn S. McCaffrey I Partner McDermott Will & Em=ry LLP I 340 Madison Avenue, New York, NY 10173 I <=span> <mailto +4=pan> I www.mwe.com <http://www.mwe.com> From: Jeffrey Epstein tmailto:jeevacation@gmai=.comj Sent: Thursday, January 31, 2013 4:38 PM To: Mc=affrey, Carlyn Subject: Re: FW: Re: <= class=MsoNormal> would there be a sales tax on foreclosures? &n=sp; sorry, On Thu, Jan 31, 2013 a= 5:31 PM, McCaffrey, Carlyn < <mailto > wrote: Here's a thought from Amy Heller, one of my partners. Carlyn S. McCaffrey I Partner McDermott Wil= & Emery LLP 1340 Madison Avenue, New York, NY 10173 I </=pan <http://www.mwe.com= target=> =nbsp; From: Heller, Amy Sen=: Thursday, January 31, 2013 4:29 PM To: McCaffrey, CarlynSubject: RE: Re: <mailto > I www.mwe.com EFTA_R1_01439152 EFTA02401988 Can you put the art and possible some liquid asse=s in an LLC? <1=> Amy E. Heller<=span> McDermott Will & Emery LLP I 340 Madison Avenue= New York, NY 10173 > I www.mwe.com From: McCaffrey, Carlyn Sent: Th=rsday, January 31, 2013 4:24 PM To: Yopp, Mark Cc: Ros=n, Arthur; Heller, Amy; Kirschner, Elyse Subject: FW: Re:=o:p> Can =ou find any authority under the NY sales tax law that;</=> 1. A sale b=tween a grantor trust and its grantor is either subject to or not subject =o the sales tax. or 2. If a grantor retained annuity trust =s funded with art and the annuity payments to the grantor are subsequently=funded with interests in that same art that: <=pan style=lont-size:11.0pt;font-family:"Calibri","sans-serif';color:#1F-97D5 &nb=p; a. th= transfer to the grantor annuity trust is either subject to or not subject=to the sales tax &=bsp; b. the annuity payments made with inter=sts in the art are either subject to or not subject to the sales tax I k=ow there is authority that grantor retained annuity payments funded with r=al estate interests will be subject to the real property transfer tax. 1= you don't know what a grantor retained annuity trust is you can call eith=r me, Elyse or Amy and we'll explain it. www.mwe.com<=a> 2 EFTA_R1_01439153 EFTA02401989 From: Jeffrey Epstein (mailto:jeevacation@gmail.coml Sent: Thursday, J=nuary 31, 2013 4:11 PM To: McCaffrey, Carlyn Subject: =e: Re: understood,=lm in search of authority, if he had put the art in day one, t=ere wouldn't be a sales tax. on contribution to the grat. would ther= have been on the pourover.? is there case law , ?=nbsp; my accts agree with me, but i pay them . so i discount it=/o:p> On Thu, Jan 31, 2013 at 5:05 PM, McCaffrey, Carlyn &l= <mailto wrote: Yes - the trust pays=and then leon would pay if he took it back. <=pan style=lont-size:11.0pt;font-family:"Calibri","sans-serir;color:#1F=97D5 > > Remember when you're thinki=g about this issue that it's not really a substitution power. We ref=r to it as that but if you look at the trust language, you will see that t=at's not what it says. It says that the settlor has the power to rea=quire and acquire trust property by substituting therefore other property =f an equivalent value. Carlyn S. McCaffrey I =Partner McDermott Will & Emery LLP I 340 Madison Avenue, Ne= York, NY 10173 ct€ =.> I jeevacation@gmail.com <mailto target=>1 Sent: Thursday, January 31, 2013 4:=3 PM To: McCaffrey, Carlyn Subject: Re: so that the trust pays? &nbs=; 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 =aid not under substruion provision. but could not point to aut=ority either On Thu, Jan 31, 2013 at 4:56 PM, Mc=affrey, Carlyn «mailto > wrote: th= person who pays the sales tax is the person who is acquiring the tangible=personal property, i.e., the paintings. yes - it could happen multip=e times just like it can happen with individuals. If, for example, l=hold a painting for investment purposes and make a section 1031 exchange, = pay sales tax. If I make a second 1031 exchange, I pay another sale= tax, etc. =p class=MsoNormal style=imso-margin-top-alt:auto;mso-margin-bottom-alt=auto;margin-leftSin5Carlyn S. McCaffrey I Partner McDermott Will & Emery LLP I 340 Madison Avenue, New York, NY 1=173 3 EFTA_R1_01439154 EFTA02401990 <te > I www.mwe.com <mailto From: Jeffrey Epstein (m=ilto:jeevacatio=@gmail.com <mailto:jeevacation@gmail.com> J Sent: Thursday, January 31, 2013 3:45 PM =o: McCaffrey, Carlyn Subject: my irs people , also now can't see s=bstitution provision causing sales tax , as it could happen multiple times=over the life of the trust, setllor could not be liable for sales ta= , or is the trust the seller and the settlor the buyer? 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