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What taxes are there on owning a property in Manhattan?
ANSWER
The BIDaWIZ Team's Answer:
I would have to say that it really depends on what kind of property you own and what you intend to do with that property. There are many levels of taxes in NYC, and they all vary by industry and use. Here are some basic guidelines of some more obvious taxes, fees, and reports you or your business will be faced with.
If you own a co-op apartment in NYC, the building pays the taxes, and you personally get an allocated amount each year as a shareholder. The amount deductible would depend on the number of shares you own in the corporation, your allocation percentage, and the expense amounts that the building incurred on the shareholders behalf.
If you own the property yourself or your business owns and runs the property; and you use the property for yourself or you rent it will also have an impact at what you can expect to pay and report.
You or your business will need to pay real estate taxes to the NYC Department of Finance annually as well as water sewer charges.
There may be reporting requirements on the property also. One example of such a report, is called an RPIE (Rental Property Income & Expense). If you will use the property to rent to tenants, you will need to report annually to the NYC Department of Finance with that form, and there are penalties if you fail to comply.
Hope this helps,
Greg Freyman, CPA
