How to Avoid the NYC Transfer Tax? - Natalia A. Sishodia

From Sishodia PLLC - How to Avoid the NYC Transfer Tax? opens with a comprehensive look at New York City real estate transfer taxes, including the New York Tax Law Article 31 and NYC Real Property Transfer Tax (RPTT), and how these layered costs impact buyers and sellers across Manhattan, Brooklyn, Queens, and the Bronx. The episode explains how transfer taxes apply to real property conveyances exceeding $500 and why transactions in New York City often carry higher tax burdens due to both state and city requirements.

Hosted with insights from Natalia A. Sishodia of Sishodia PLLC, this discussion explores who pays transfer taxes under New York Tax Law Section 1404 and the NYC Administrative Code, including how sellers are typically responsible unless contracts shift liability. It also examines scenarios involving new construction in Manhattan, where buyers may be required to absorb transfer taxes, and clarifies the roles of the mansion tax and NYC supplemental tax in high-value transactions.

Listeners will gain a clear understanding of exemptions under New York Tax Law Section 1405 and NYC Administrative Code Section 11-2106, including government conveyances, bona fide gifts, bankruptcy transfers, and deeds of partition. The episode also dives into advanced strategies like the consolidation, extension, and modification agreement (CEMA), explaining how tools like the continuing lien deduction and excludible lien rules—reviewed by the New York City Department of Finance—can reduce taxable consideration and lower closing costs.

Finally, the podcast highlights practical considerations such as timing property transfers, navigating filing deadlines with Form TP-584-NYC and ACRIS through the Office of the City Register, and avoiding penalties enforced by the New York State Tax Department. With guidance tailored for buyers, sellers, and investors, Sishodia PLLC outlines how careful planning, awareness of tax thresholds, and strategic structuring can help minimize liability and ensure smoother real estate transactions in New York City.

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