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 New York City property taxes, and they all vary by industry and use. Below, I’ve provided some basic guidelines that cover the taxes, fees, and reporting obligations.
If you own a cooperative (co-op) apartment in NYC, the building pays the taxes, and you are allocated your share of taxes each year as a shareholder. The deductible amount depends 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.
Property taxes also depend on whether an individual owns the property for personal use or it’s owned by a business. If it is owned by a business, your business will need to pay real estate taxes to the NYC Department of Finance annually as well as remit water sewer charges.
There are also property reporting requirements. For instance, a reported called the RPIE (Rental Property Income & Expense) covers rentals. Specifically, if you will use the property to rent to tenants, you will need to report the rental activities annually to the NYC Department of Finance utilizing that form. If you fail to remit the form, you will face penalties.
These are just some very basic guidelines to get you started with understanding the NYC property tax rules. If you have NYC landlord tax questions, please do not hesitate to contact us.
