David is purchasing a $1.6 million cooperative apartment through his LLC for investment purposes. How does the mansion tax apply to this transaction?
Correct Answer
A) Mansion tax of $16,000 is due regardless of the LLC ownership
The mansion tax applies to residential property transfers of $1 million or more regardless of the buyer's entity type or intended use. The fact that an LLC is purchasing for investment does not exempt the transaction. Tax due: $1,600,000 × 1% = $16,000.
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Lisa is purchasing a townhouse for exactly $1,000,000. What mansion tax will she owe under New York law?
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Maria is purchasing a $1,750,000 penthouse. The contract states the seller will pay $25,000 toward the buyer's closing costs. For mansion tax purposes, what is the taxable consideration?