EFTA01906226.pdf

To: McCaffrey, Carlyn[ From: Jeffrey Epstein Sent Thur 1/31/2013 9:50:23 PM 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 e > wrote: 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 & Eme LLP www.mwe.com From: Jeffrey Epstein imailto:jeevacationftmail.coml 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 II=MM wrote: Here's a thought from Amy Heller, one of my partners. Carlyn S. McCaffrey McDermott Will & Emery LLP I www.mwe.com From: Heller, Amy Sent: Thursday, January 31, 2013 4:29 PM EFTA_R1_00339321 EFTA01906226 To: McCaffrey, Carlyn Subject: RE: Re: Can you put the art and possible some liquid assets in an LLC? Amy E. Heller McDermott Will 8, Emery LLP I 340 Madison Avenue, New York, NY 10173 +1 212 547 5584 (p) I +1 646 304 9388 (0 I [email protected] I www.mwe.com 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. EFTA_R1_00339322 EFTA01906227 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 8 Emery LLP I 340 Madison Avenue, New York, NY 10173 +1 212 547 5324 I [email protected] l www.mwe.com From: Jeffrey Epstein Em_ailto:ieevacationOomail.com] 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 <[email protected]> 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 LIP I 340 Madison Avenue, New York, NY 10173 +1 212 547 5324 I [email protected] l www.mwe.com From: Jeffrey Epstein [mailto:jeevacationCcbgmail.cOm] Sent: Thursday, January 31, 2013 4:03 PM To: McCaffrey, Carlyn Subject: Re: so that the trust pays? then if Icon wantss to substitutiic cash he pays. i am aware of 1031 EFTA_R1_00339323 EFTA01906228  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 <[email protected]> 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. III make a second 1031 exchange, I pay another sales tax, etc. Carlyn S. McCaffrey I Partner McDermott Will 8 Emery LLP I 340 Madison Avenue, New York. NY 10173 +1 212 547 5324 1 [email protected] i www.mwe.com From: Jeffrey Epstein [mailto:[email protected]] 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 [email protected] and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved *************** *** ************** 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 EFTA_R1_00339324 EFTA01906229  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. 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If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to jec‘ [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 EFTA_R1_00339325 EFTA01906230 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 icor acalion aunku I coin, 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 jecvacation(agmail.com, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA_R1_00339326 EFTA01906231