![]() ![]() In the absence of information suggesting the DOF classification of the property as class 1 is incorrect, that classification is controlling for RPTT purposes. The sale of a one-family home with one office, categorized as tax class 1 to reflect that the property is used primarily for residential purposes, and having a building code S1 (primarily one-family with one store or office) consistent with the tax classification, is taxed at a reduced rate of 1.425 percent when calculating the RPTT due upon the conveyance of the property. ![]() The sale of two cooperative apartments that had been used as a single residential dwelling for over 40 years, where the purchasers (with board approval using a proposal obtained from an architect) intend to physically combine the units, should be treated as the sale of a single cooperative apartment subject to the lower tax rate schedule under Administrative Code § 11-2102(b)(1)(B)(i). ![]() The sale of two noncontiguous condo units to two LLCs with the same beneficial owners is subject to the bulk sale rate.Ī two-family house with commercial space, but which is primarily residential, is treated as residential for purposes of the RPTT. The sale of adjacent cooperative units that were intended to be combined into one, where substantial work had been completed with regard to the combination, is treated as subject to the lower tax rate. #19-4995 Ī one-family house, with commercial space occupying approximately one-fifth of the total square footage of the property, is treated as residential for purposes of the RPTT. Sale of two adjacent condominium units that had been used as a single residential dwelling, where the purchaser submitted proof of intention to combine, should be treated as the sale of an individual condominium unit subject to the lower tax rate under Administrative Code § 11-2102.a(9)(i). In the absence of information suggesting that DOF classification of a single family home with a store as class 1 is incorrect, the property is taxed at the lower rate applicable to one, two, and three-family houses. In the absence of information suggesting that DOF classification of a two-family home with a large garage as class 1 is incorrect, the property is taxed at the lower rate applicable to one, two, and three-family houses. In the absence of information suggesting that DOF classification of a single family home with an office as class 1 is incorrect, the property is taxed at the lower rate applicable to one, two, and three-family houses. #22-5022 7/21/22ĭistribution of unsold units in a condominium development to the members of the owner LLC where each member receives a share of the units equal to their interest in the LLC is exempt as a mere change of form #22-5020 7/21/22Ĭonveyance structured in accordance with statement of audit procedure RPTT-2008-03 will qualify for the “dummy/straw man” exemption to the RPTT. Sale of a single condominium apartment unit along with two noncontiguous studio units, the ownership and use of which is substantially restricted under the condominium’s by-laws, should be treated as the sale of an individual condominium apartment subject to the lower tax rate schedule for Real Property Transfer Tax provided in Code section 11-2102(a)(9)(i). In a sale of commercial real property where residential real property is used to satisfy part of the consideration, the RPTT will apply twice: once to the transfer of the commercial property and once to the transfer of the residential property. Taxpayers’ sale of two cooperative units that were combined prior to sale is treated as the sale of an individual cooperative unit. Written by the Department of Finance Legal Affairs Division, letter rulings are written statements that set forth the applicability of the statutes and rules to a specific set of facts and are provided in redacted form to protect taxpayer-specific information. Redacted Letter Rulings - Real Property Transfer Tax (RPTT)
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