EFTA00652924.pdf

From: "McCaffrey, Carlyn" alla> To: Jeffrey Epstein <[email protected]> Subject: RE: FW: Re: Date: Thu, 31 Jan 2013 21:56:24 +0000 A lively exchange with you is never a torture. Carlyn S. McCaffrey I Partner McDermott Will & Eme LLP 340 Madison Avenue New York NY 10173 mailto: From: Jeffrey Epstein [mailto:[email protected]] 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, McCaffre Carl n mailto: > 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 I Partner w York, NY 10173 mailto: cMa' From: Jeffrey Epstein [mailto:[email protected]<[email protected]>] 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, McCaffre Carl n mailto: > 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 mailto: ltaa' From: Heller, Amy Sent: Thursday, January 31, 2013 4:29 PM To: McCaffrey, Carlyn Subject: RE: Re: EFTA00652924 Can you put the art and possible some liquid assets in an LLC? Amy E. Heller McDermott Will Eme LLP 340 Madison Avenue New York NY 10173 DI mailto: > 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 & Eme LLP 340 Madison Avenue New York, NY 10173 c.a )' 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, McCafFre Carl n mailto: > 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. EFTA00652925 Carlyn S. McCaffrey I Partner McDermott Will & Eme LLP 340 Madison Avenue New York, NY 10173 mato: From: Jeffrey Epstein [mailto:[email protected]<mailto:[email protected]>] 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, McCafFre Carl n mailto: > 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. Carlyn S. McCaffrey I Partner McDermott Will & Eme LLP 340 Madison Avenue New York, NY 10173 me EFTA00652926