The state’s popular co-op and condominium tax abatement — which in March was revoked for homeowners who own their apartments through LLCs or trusts – will now once again be available to trusts, the New York Observer reported. Apartments owned through LLCs, however, will continue to be ineligible for the tax break.
The State Legislature has modified the law to include both revocable and irrevocable trusts — provided that the apartment is the primary residence of one of the designated trustees or benefit holders. In other words, the legislature will allow the abatement if it can verify that the beneficiary of the trust is a full-time resident of the apartment.
As of this spring, there were 2,201 units in the city owned by trusts and approximately 5,500 owned by LLCs, according to the Observer. Real estate insiders see tax breaks as essential to the market’s growth, as The Real Deal reported.
The Department of Finance – in a fact sheet on abatements seen by the Observer – said of LLCs that “units owned by sponsors, corporations, partnerships, or by persons who own more than three dwelling units in the development are ineligible.” [NYO] – Hiten Samtani