Purchasing Residential Property in NYC: Coordinating State Tax and Beneficial Ownership Rules
Manhattan remains the nation’s priciest housing market, with 2025 seeing 64% of co‑op and condo sales paid entirely in cash and nearly 90% of transactions above $3 million cash‑funded. In upscale neighborhoods, more than half of purchases are routed through limited‑liability companies, which obscure the true owners. New York State has floated a 1% surcharge on all‑cash residential deals over $1 million, while federal and state transparency rules—FinCEN’s suspended reporting requirement and the limited scope of the Corporate Transparency Act—remain in flux. The combined trend raises questions about revenue, equity, and anti‑money‑laundering enforcement.
Tax Planning and The Political Pendulum
Democratic senators have filed a wave of tax bills aimed at higher‑income earners and closely held businesses, signaling a "tax‑the‑wealthy" agenda ahead of the 2026 midterms and a potential 2028 Democratic trifecta. Proposals include raising the corporate rate to 28%,...
The “Mandated” New York S Corporation Election – Does Investment Income Include Gain From the Sale of Goodwill?
New York’s tax code mandates that a federal S corporation be deemed a New York S corporation when more than 50% of its federal gross income is classified as investment income. In a recent case, the Department of Taxation and...