What is the coop condo tax abatement in New York City and how can you make sure
that you actually are receiving the abatement? We'll demystify this topic in the
following video, my name is Chris at Hauseit. Hauseit is the largest For
Sale by Owner and Buyer Commission Rebate company in New York City
established 2014. You can check us out at www.hauseit.com spelling is below.
The coop condo tax abatement can save apartment owners 17.5% to
28.1% off of their annual property tax bills
depending on their average assessed value. The calculation is based on
several brackets in a progressive sliding scale. For properties that have
an average assessed value of 50,000 or less, they qualify for the
maximum tax savings of 28.1%. For properties with an
average assessed value of sixty thousand and one dollar and more, they qualify for
the lowest tax bracket of 17.5% in savings. Keep in
mind that that assessed values typically have nothing to do with true market
value. For example, let's say a one-bedroom condo in lower Manhattan
with a market value of say $2,000,000 might have a assessed value of
only $150,000 or so. Again, this has nothing to do with actual market value
it's just a figure that local officials used for taxation purposes. So how can
property owners check whether they've been eligible or already received the
coop condo tax abatement? Well, for condo owners they can shut their property
taxes directly on the New York City Department of Finance website and take a
look at their latest quarterly tax bill. At the end of the quarterly tax bill,
they'll see an annual tax figure and before that they'll see any reductions
due to abatement or exemptions. If you are receiving the coop condo tax
abatement, you will see it outlined as a line item which reduces your tax bill. Coop
apartment owners will want to ask their managing agent on whether they've qualified
and receive the coop condo tax abatement. You can also check their maintenance
bill if you are a co-op apartment owner and see if you have automatically been
credited money from your next monthly maintenance bill due to the abatement.
Oftentimes, co-op buildings will actually just retain the money that comes from
the tax abatement directly as revenue and issue a special assessment to
shareholders for the exact amount of the tax rebate so that no money actually
goes to the shareholder. This is actually quite common and the reason often given
for this is to reduce the amount of maintenance or monthly maintenance
optically so that it's easier for any potential sellers in the building. So, as
a condo or co-op owner, do you need to apply for the tax abatement yourself?
Well, no. Actually the managing agent of your condo or co-op building is
responsible for filing this on your behalf and for checking ideally each
year or whether a condo or co-op apartment owner still utilizes the
apartment as his or her primary residence which brings us to our next
section. What are the requirements to qualify for the condo co-op tax
abatement? The first one as we've discussed is the property must be the
primary residence of the apartment owner. This means
no investors or second home buyers. The home cannot be owned by an LLC or any
type of business. You cannot own more than three residential units in a
building, and if you own three or under then at least one of the units must be
your primary residence to qualify. Units owned by sponsors or their successors
and interests are not eligible. In a similar vein, if the property is
held by a trust, the property is only eligible for the abatement
the beneficiary has his or her primary residence at the property. We hope you
found this video helpful, if you have any questions about buying and selling
property in New York City and how you can save money on closing costs or
broker commissions please check us out www.hauseit.com. We'll see you on the next one!