Buyers using an LLC might get a tax break — if they can prove safety concerns

City officials are proposing that owners can submit a waiver

TRD New York /
Jan.January 30, 2019 10:00 AM

(Credit: Pixabay)

New Yorkers who buy property under an LLC for security reasons might be eligible for a tax break.

The city’s Department of Finance restricts condo and co-op buyers who use an LLC from getting a partial tax abatement. But a proposed amendment would let them apply for a waiver if they can prove they used a corporate name for security reasons, the Wall Street Journal reported.

The change was a suggestion from the law enforcement community and judges, city officials said. The department expects it would receive a limited number of waiver requests because the process requires documentation that they would be in danger if disclosed as the owner, the report said.

“The new rule is intended to benefit anyone who may have safety concerns having their address information made public, including those in law enforcement and victims of domestic violence,” said Finance Department spokeswoman Sonia Alleyne.

The tax abatement program can save owners between 17.5 and 28.1 percent a year on property taxes. To be eligible, the apartment must be the owner’s primary residence and they can’t be receiving an abatement or exemption through another program.

Celebrities often use LLCs for security concerns, but the entities have become one of the most dominant ways to purchase real estate in the city.

Mary Ann Rothman, executive director of the Council of New York Cooperatives and Condominiums, said she understood the security concerns but that apartments shouldn’t be owned by corporate entities.

“I’m not a big fan of corporate ownership,” she said, “and this of course would further encourage it.” [WSJ] — Meenal Vamburkar


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
421 Broome Street (Google Maps)

Soho penthouse buy sets record despite price chop

Soho penthouse buy sets record despite price chop
Oxford Property Group CEO Adam Mahfouda and (inset) the late Bianka Yankov (Mahfouda courtesy of Propco Holdings, iStock, Linkedin)

Oxford Property Group acquires Spire, expands to nearly 800 agents

Oxford Property Group acquires Spire, expands to nearly 800 agents
New York Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins (Getty)

New York lawmakers push for new millionaires’ tax

New York lawmakers push for new millionaires’ tax
Brooklyn’s Sunset Park is in the midst of a severe housing crisis and in desperate need of affordable housing. (Photo by Jim.henderson via Wikipedia)

Sunset Park faces severe affordable housing shortage: report

Sunset Park faces severe affordable housing shortage: report
209 Dean Street and 315 Adelphi Street (Google Maps)

Sprawling Brooklyn townhouses drive week’s priciest deals

Sprawling Brooklyn townhouses drive week’s priciest deals
The number of single-family homes on the market hit historic lows in July, driving prices up (iStock)

US housing supply reaches nearly 40-year low

US housing supply reaches nearly 40-year low
arrow_forward_ios

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

Loading...