Mansion Tax

Properties sold for $1 million and more. Added to the mortgage tax for condos, and the conveyance / stamp tax and flip tax (for co-ops), not to mention the real-estate commission, and you have HUGE transaction costs that the bulls - meaning now, unlike months ago, those who think prices will only fall 20% from peak - always neglect when they do their math.

Steve,

Thanks for the response.

How much is the tax and is it for the full price or anything above a million?

You'll need to google the details. I believe it's 1% on the full price for any price over $1 million, but I've never paid it so can't be certain. I think corcoran.com has an explanation.

Steve is correct,1% on the total price for properties over $1MM

adam, UNLIKE WHAT STEVE SAYS, it's 1% of the price flat. In a co-op, nothing is added, no flip tax, no nothing. If the price is $1100000, your mansion tax is $11000. Period.

inquirer, I didn't say what you think I said. Read it again. I said that the mansions tax is 1% of the full purchase price over $1 million. I said that all the other expenses are part of the transaction costs.

Period.

Thanks Everyone, I really appreciate the responses....So mansion tax applies to both Coop and Condo? I just need to be sure.

Adam

Yes, mansions tax applies to both co-ops and condos. Mortgage tax applies only to condos and, if mishandled, to refis.

The mansion tax comes in slightly below the $1 million threshold. A closing tax (forgot which one) is added to your purchase price and if that hits the $1 million mark you are stuck with the tax.

csn, very good point. Does anyone know which taxes get added to purchase price of a coop? State transfer tax? city transfer tax? Just trying to figure out the max you can buy at ($975,000 ??) and still avoid the mansion tax.

"A closing tax (forgot which one) is added to your purchase price and if that hits the $1 million mark you are stuck with the tax."

Not that I know of, because all conveyance taxes are payable by the seller - they're the ones conveying.

Let me clarify: yes, for condos there is a transfer tax payable by the purchaser in the case of new development:

http://www.cityrealty.com/resources/closing_costs.cr

Not for resales, though, and not for co-ops.