Estate tax proposal could slam NYC’s wealthy

Rising property values, diminishing tax credit would leave some heirs paying onerous rate

New York /
Apr.April 07, 2014 01:08 PM

Although recent changes to estate law boosted the amount most New Yorkers can leave their heirs tax-free, some wealthy residents could be charged substantially more than their property is worth.

The state legislature initially provided a tax exemption to estates worth less than $1 million.

Governor Andrew Cuomo — aware that property values could easily push homeowners in New York City and elsewhere over the limit — last week proposed gradually increasing the threshold. The exemption is slated to jump to the Federal level of $5.8 million in 2019, Crain’s reported.

But Kevin Matz,  an attorney and certified public accountant based in White Plains, points out the proposal also phases out a tax credit used by the wealthy to reduce the taxable portion of their estate. What’s more, a welter of changes to the tax code in the proposed bill means heirs to estates that exceed the exemption threshold by a mere 5 percent will be forced to pay a steep tax on the overage.

“It creates a problem where if you’re just a little bit above the exemption, you could pay $1.64 in taxes for every dollar you go over,” Matz told Crains. “If it’s not a mistake, it’s somewhat laughable.”

The law comes as tax assessments on properties are set to rise 8 percent in July, the largest jump since June of 2008, as previously reported[Crain’s]Angela Hunt


Related Articles

arrow_forward_ios
Governor Andrew Cuomo and Senator James Skoufis (Credit: Getty Images, NY Senate)
Owners of some residential properties can’t hide behind LLCs anymore
Owners of some residential properties can’t hide behind LLCs anymore
Governor Andrew Cuomo and 538 Johnson Avenue in Brooklyn (Credit: Google Maps and Getty Images)
Landlords take another hit: Cuomo signs expanded Loft Law
Landlords take another hit: Cuomo signs expanded Loft Law
Governor Andrew Cuomo (Credit: Getty Images)
Cuomo wants to exempt NYC from prevailing wage bill
Cuomo wants to exempt NYC from prevailing wage bill
Photo Illustration of Donald Trump (Illustration by Kevin Rebong for The Real Deal)
Treasury Dept must give Trump’s tax returns to Congress: DOJ
Treasury Dept must give Trump’s tax returns to Congress: DOJ
Gov. Andrew Cuomo (Getty, iStock)
Cuomo vows to speed rent relief after pressure from Schumer
Cuomo vows to speed rent relief after pressure from Schumer
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
Democrats look to curtail tax break for “pass-through” businesses
Democrats look to curtail tax break for “pass-through” businesses
Democrats look to curtail tax break for “pass-through” businesses
Regeneron CEO Leonard Schleifer and 777 Old Saw Mill River Road in Tarrytown (Getty, Jim.henderson/Wikimedia)
Biotech firm Regeneron plans $1.8B expansion in Westchester
Biotech firm Regeneron plans $1.8B expansion in Westchester
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...