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NYC UBT - Unincorporated Business Tax

Started by LuxuryBroker
almost 8 years ago
Posts: 66
Member since: Jul 2017
Discussion about
Guys, is this for real? The injustice of this kills me. An additional 4% flat tax on income of self employed people in the city? When that income is already taxed once by the city through its ~4% personal income tax? Top marginal income tax rates for NY State and NYC combined is around 12% no? Plus 4% we're talking about over 16% ... for your freaking local income taxes. Because the UBT is hardly reported, that's over 16% local taxes. Worse than California! Conveniently, real estate investors are once again spared from this tax, it's just people who actually run a business, work or are self employed that get screwed. This is f*cking unbelievable.
Response by anonymousbk
almost 8 years ago
Posts: 124
Member since: Oct 2006

Wait, hasn't this been around forever? Do you have a link to something that shows this is new?

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Response by front_porch
almost 8 years ago
Posts: 5316
Member since: Mar 2008

UBT takes awhile to kick in ... if you make less than $100K net from your business, there's no UBT at all, IIRC, and then it's sloped up to about $150K. If you're making more than $150K net seems like you might want to consider structuring your business as a pass-through corp., given the new tax bill. Real estate salespeople weren't given the same breaks that architects and real estate investors were, though, so consult your tax pro.

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Response by JR1
almost 8 years ago
Posts: 184
Member since: Jun 2015

It's been around for a while but not surprised, most NYers do not know about it.

Basically your neighborhood small business has to pay income tax twice:

https://www.hauseit.com/nyc-real-estate-taxes/

True, there are some exemptions say if you make less than 100k, but there are a lot of higher earning self employed folks in NYC who get killed by it.

And no, just switching to a s-corp is not the answer. NY has a General Corporation Tax close to 9%, see article referenced above.

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