Mansion Tax Question

Have you asked the sponsor to pick up the tax on the smaller unit? It's a cost customarily paid by the buyer, but I don't see a reason why it's not negotiable . .

ali r.
{downtown broker}

"Pursuant to New York Tax Law Section 1402-a, the state collects a 1% tax from buyers who purchase a one, two or three family home or an individual condominium or cooperative unit for $1 million or more."

I don't see how the above would apply to a $600K apt. regardless if you purchased one or two. As you stated, they are two separate & distinct properties. You should consult with your attorney ASAP.

Everything's been negotiated that can be -- Sponsor won't pick up another penny. Is it your belief that the tax IS due on the smaller unit? Thanks.

uws_buyer, put one of the units in another name. This would take care of any question of paying the mansion tax on the smaller unit. If you are thinking of purchasing as an investment or just to have another unit for some reason put the unit in an LLC. There is also an additional tax if you buy multiple units in the same building. The tax is on the total sale of both units. Putting the units in different names will save you the mansion tax on the smaller unit and the additional 1% tax on both units. And the great part is it is totally legal. You might want to check with your attorney for the particulars. Good luck.

Thanks serge - I've (again) approached my attorney with this matter, this time specifically raising the content of NYS Tax Law sec. 1402-a as pertinent for review.

csn - thanks for your comment too (not as promising, but I'm after the real answer..-- I'll discuss your suggested option with the atty too. (Do you know whether it would count as a different name if one condo was purchased jointly by husband and wife, and the other was purchased by only one of them?)

uws_buyer, my guess is that having the different names on the deed would take care of the problem. Something else to check with the attorney.

I believe that is very possible that you have to pay mansion tax on both units. Of course purchasing it in 2 different names would solve that. But I will find out for sure if its definite. sunny_hong@countrywide.com