May
01

No Co-op and Condo Tax abatements for Pied a Terre, LLC and Trusts

By

Last winter lawmakers in Albany enacted an extension to the 17.5% tax abatement through June 30, 2015, but they placed a restriction that excludes pied-a-terres.  Since all homes owned by LLCs and Trusts are considered pied-a-terres, they are excluded from receiving the abatement, according to the city’s Department of Finance.  According to spokesman Owen Stone, “We have not changed our interpretation of the law – the law has changed.  Under the previous law there was no restriction, and LLCs and Trusts could qualify, under the new law, they do not.”

This new law could affect approximately 7,700 homeowners who are concerned with their privacy and the convenience of owning property in a trust.  Some experts are saying the new law is penalizing people who want this privacy or convenience, even as the breaks are seen as essential to the market’s growth.

Even the most strict co-op boards who did not allow pied-a-terres have allowed them in recent years for trusts and LLCs, as long as only the trust holder lives there.

Based on article at The Real Deal

Comments are closed.