Balancing The Budget By Taxing Real Estate . . . Again!
In the typical “smoky backroom” that is a regular part of the state’s budget process, the legislature passed and the Governor signed an unexpected change to the real estate transfer tax. The surprise change was in lieu of a disastrous possible pied a terre tax that Mayor DiBlasio had originally supported. The new taxes impact …READ MORE
Understanding NYC Real Estate Taxes: How Do I Know When a Tax Benefit Will End?
This week we analyze a property receiving a 421a tax benefit and see how it “rolls back” with the passage of time. Clients often ask, “what would my taxes be if this tax benefit were not in place?” Let’s see how to figure this out. Consider a condominium apartment at 200 Chambers Street. The apartment …READ MORE
Understanding the Fundamentals of New York City Real Estate Taxes: What Any Real Estate Expert Needs to Know
NYC real estate taxes are an important component of value, and can be a source of confusion for even the most seasoned broker. Here are some basics that should help clear up the mystery. Abatements and Exemptions: NYC has various tax programs that operate to reduce the tax burden on certain real estate. Depending on …READ MORE
The Coop / Condo Abatement: New Rules That Any Real Estate Expert Needs to Know
NYC real estate taxes are an important component of value, and recent developments in this area require close attention. This abatement gives eligible coop and condominium owners a reduction in their real estate taxes. Here are the changes that were recently enacted. Primary residence: The apartment must be the owner’s primary residence to be eligible …READ MORE
When Foreigners Sell
One of the nice things about selling real estate in New York is that even those who have never had to file a tax return before get to file one. What could be better than that! Like everything else in our market, the rules are complicated. Let’s simplify it. New York State: Individuals (and trusts …READ MORE
In the Aftermath Of Sandy
As the recovery from Sandy continues, the financial impact of the storm continues to grow. Here is a brief legal guide that may help those most affected in making decisions. Flood insurance: It’s hard to learn after a storm like Sandy that typical homeowner / condo owner / coop owner insurance policies do not cover …READ MORE
Gift Taxes And The Lifetime Exemption
It’s very common in real estate deals for the buyer to get financial help from family members. But what about the gift taxes? Buyers inevitably ask this question, and often have incorrect assumptions about how it works. Who Pays?: Gifts are not income, and almost all cases it is the donor or the giver of …READ MORE
The 1031 Adviser: Converting 1031 Replacement Property into a Principal Residence
It’s not uncommon for an investor to convert a property held for business, trade or investment into one’s principal residence. Change in investment potential of the property, or a desire to get out of the landlord business, might make the investor decide to change the use into one held as a primary residence. And prudent …READ MORE
Leaving Thousands of Dollars on the Table?
Even the most saavy buyer and seller in New York City may not realize a hidden saving that can cost them thousands in unnecessary recording taxes. And better brokers are versed in this loophole and will alert clients of the potential. Here is how it works. In New York City, there is a tax when …READ MORE
Not Realizing You Bought a Mansion – Congratulations!
Do you remember when buying a house for a million dollars really meant you were buying a mansion? Probably not. But there was a time when the “mansion tax” really meant what it was called. Now it’s just a cruel joke repeated at the closing table when buyers write out checks for 1% of the …READ MORE