EFTA01906161.pdf

To: Jeffrey Epsteingeevacation©gmail.com] Cc: Yopp, Mark[ From: McCaffrey, Carlyn Sent Thur 1/31/2013 9:46:56 PM Subject RE: FW: Re: 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 www.mwe.com From: Jeffrey Epstein [mailto:jeevacation@gmail.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 www w From: Heller, Amy Sent: Thursday, January 31, 2013 4:29 PM To: McCaffrey, Carlyn Subject: RE: Re: EFTA_R1_00339178 EFTA01906161 Can you put the art and possible some liquid assets in an LLC? Amy E. Heller McDermott Will & Emery LLP I 340 Madison Avenue, New York, NY 10173 +1 212 547 5584 (p) I +1 646 304 9388 (1) I aheller@mwe.com j 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. 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. EFTA_R1_00339179 EFTA01906162  Carlyn S. McCaffrey I Partner McDermott Will & Emery LLP I 340 Madison Avenue, New York, NY 10173 +1 212 547 5324 I cmccaffrev@mwe.com I www.mwe.com From: Jeffrey Epstein [rnailto:ieevacationOamail.coml 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 <Cmcca' _y@mwe.com> 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 +1 212 547 5324 I cmccaffrev@mwe.com I www.mwe.com From: Jeffrey Epstein [mailto:jeevacation@gmail.com] 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 <Cmccaffrey@mwe.com> wrote: EFTA_R1_00339180 EFTA01906163 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 & Emery LLP I 340 Madison Avenue, New York, NY 10173 +1 212 547 5324 I cmccaffrey@mwe.com i www.mwe.com From: Jeffrey Epstein [mailto:ieevacationgiamail.com] 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.com, 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 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. EFTA_R1_00339181 EFTA01906164 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 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. trent *****************Itntntitrinfret****************IHrit ii•****************•****IrfitHrititr itr********/******** 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 jeevacation@gmail.com, 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 jcevacation@gmail.com and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA_R1_00339182 EFTA01906165  ************* 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 pan 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@gmail,com, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA_R1_00339183 EFTA01906166