A buyer is purchasing a $1.8 million townhouse in Manhattan through a 1031 like-kind exchange. The buyer's attorney is reviewing the tax implications. Which statement about NYC additional taxes in this transaction is most accurate?
Correct Answer
B) Both the mansion tax and NYC transfer tax must be paid at closing regardless of the 1031 exchange
Both the mansion tax and NYC transfer tax are transfer taxes that must be paid at the time of closing, regardless of whether the transaction qualifies for 1031 like-kind exchange treatment for federal income tax purposes. These are transaction-based taxes, not income taxes, so they are not deferred by 1031 exchanges.
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More Ny Tax Law Questions
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- → All of the following transactions would be subject to New York State transfer tax at $0.40 per $100 of consideration EXCEPT:
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