Published September 20, 2023
New York City real estate lawyer Natalia A. Sishodia (https://sishodia.com/what-is-the-mansion-tax-in-new-york-city/) of Sishodia PLLC has recently published an enlightening article titled “What Is the Mansion Tax in New York City?” The article delves into the intricacies of the mansion tax, providing a comprehensive explanation of this often misunderstood aspect of New York City’s real estate market.
In the first few lines of her article, Sishodia, a highly regarded New York City real estate lawyer, reminds that the mansion tax can be a significant closing cost. Despite its name, it applies not just to traditional mansions but to any home, condo, or co-op purchased in New York City for over $1 million, a price point that could involve a relatively modest property given the city’s high real estate prices.
The New York City real estate lawyer notes the mansion tax was initially imposed three decades ago as a means of supporting the state’s budget by taxing wealthier individuals who were considered more able to afford it. However, the New York City real estate market has evolved since then, and the tax now affects a broader range of buyers.
“Understanding the mansion tax is crucial for anyone involved in a real estate transaction in New York City,” Sishodia commented. “It’s not just about the cost — it’s about understanding the implications of this tax on different property types and planning accordingly.”
The article further delves into the evolution of the tax, highlighting its shift from a flat 1% on purchases over $1 million to a scaled structure based on the purchase price. The current rates range from 1% to 3.9%, with the highest tier applying to properties purchased for $25 million or more.
Sishodia also clarifies who pays the mansion tax: “In New York State, the mansion tax is a financial obligation that falls upon the purchaser of a property rather than the seller.” The article provides a comprehensive breakdown of the tax’s applicability, including the detailed tax structure and how it’s calculated.
Moreover, Sishodia’s article underscores the need to factor in the mansion tax when estimating closing costs for a property purchase in New York City. As she points out, this applies regardless of whether the property in question is a single-family home, condo, or co-op.
To delve deeper into the world of the mansion tax and other real estate complexities, Sishodia’s new article is a must-read.
About Sishodia PLLC:
Sishodia PLLC is a reputable law firm based in New York City. Led by Natalia A. Sishodia, the firm provides comprehensive legal services in the realm of real estate law. The commitment to provide personalized guidance and robust legal support has made them a trusted partner for clients navigating the city’s complex real estate landscape. Their in-depth understanding of the evolving market and its implications on various property types empowers clients to undertake real estate transactions with confidence.
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