TRANSFER TAXES: SELLERS MUST BE AWARE

Transfer taxes can be a real big surprise for the unknowing home seller. All sellers must be aware of these taxes and what they’ll cost.NYS

Both New York City and New York State transfer taxes are due and payable by the seller whenever real property is transferred in NYS & NYC. EVEN IF YOU SELL THE PROPERTY ART A LOSS!!

Why? Because these taxes are imposed on the consideration – the money – received for real property.

The tax charged by NYS for any transfer of an interest in real property in excess of $500 is payable by the seller. The tax rate is 0.4{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} of the consideration received.

In addition, NYC imposes a transfer tax on all conveyances (sale, exchange, assignment, surrender, option, or transfer) that are above $25,000. The NYC transfer tax is 1.425{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} for sales over $500,000 and 1{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} for those under $500,000.

Sellers need to be made aware of these taxes, or they’ll be in for a big surprise.

For more information see the links below.

>> NYC Real Property Transfer Tax (RPTT)

>> NYS Real Estate Transfer Tax

 

 

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