Domestic union as workaround for I594

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Just curious. I was reading I-594, and it looks like transfers between "domestic partners" are exempt.

Apparently a "domestic partnership" only costs $25 to register in Washington, and just requires mailing in a form:
http://www.seattle.gov/cityclerk/services-and-programs/domestic-partnership-registration

So... if I transfer (say) a $1200 AR to another guy, total cost would be ~$120 ($100 use tax + $20 FFL fee). But instead I could just form a domestic partnership and complete the transfer (with no FFL) for $25?

The SO117244 rules don't require you to be gay, just have "mutual caring". Terminating the partnership is free and just requires mailing in another form.


Under City of Seattle Ordinance 117244, Domestic Partners are defined as any two people who:

  • Are both 18 years of age are older;
  • Are not married;
  • Are not related to one another by blood in a manner that would bar their marriage in Washington State;
  • Have a relationship of mutual support, caring, and commitment; and
  • Do not have any other domestic partner.
  • The Domestic Partnership Registration Program does not require residence in Seattle; it is open to all persons anywhere who wish to participate.

Anyway hypothetical since I'm an Oregonian, but interesting to know.
 
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Do both parties have to agree to terminate the domestic partnership? If not, I would worry about these laws changing...or having tax complications with declaring any domestic partnerships you've been in.

At a minimum, I definitely see a tax audit in your future if you do a domestic partnership followed by a cancellation every year.
 

Morpheus

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Domestic Partnership laws usually are thrown into the system as a bad compromise. So it doesn't surprise me that this type of loophole exists. Funny as hell to think of Bubba Jo and John Boy getting a domestic partnership to by-pass an annoying law, then having a 'squabble' and dissolving it the next day.
 

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