Avoiding Flip Taxes?

It's basically fraud. There are other taxes payable to the city and state that are also linked to the sale price of the property. There is no way you should be doing this.

Yay Pyo. Remember you don't give legal advice, that's a license problem too, so demand that your seller consult their attorney. If the highly unlikely event that attorney goes along, tell your manager. In fact you might want to get your manager in the loop even now.

Co-op isn't that dumb- won't accept a price 20% below the market at exactly the same price as the cost. What building has a 50% of profit flip tax?

Are you sure you have that right? 50% of the net profit for the flip tax? Is this an HDFC building?

Keith Burkhardt
TBG

Yeah - the amount of the flip tax makes no sense. It is generally about 2% of the selling price. In this case, $8,200.
Other closing taxes payable to the city/state are also at about 2%, so another $8,200. The thing is, even by reducing the selling price to 330k, all the seller is saving is 2% of the difference (80K) or $1,600. Definitely not worth it.
For more details on the closing taxes/fees, you can check out - http://bit.ly/1d4nCy6.

Has to be an HDFC with a flip tax that high. While I understand you are leaving the building, your strategy is screwing your neighbors and your buyer (I hope the buyer reads these forums) since a portion is meant to fund the buildings needs. Many HDFC's are able to keep maintenance low because of these high flip taxes.

Sorry, I realized you are the broker rather than the seller, but the same principal applies