What's the Average Co-Op Tax Deduction in NYC? | Hauseit®
Hauseit
2019-03-26
Views 2
Is Co-op Monthly Maintenance Tax Deductible in NYC: https://www.hauseit.com/sample-co-op-tax-deduction-letter-nyc/
Interactive Co-op Tax Deduction Calculator: https://www.hauseit.com/co-op-maintenance-tax-deduction-calculator/
Co-op owners in New York City typically receive an annual co-op tax deduction letter in the mail each year which specifies how much of a tax deduction each owner can take on their personal income tax returns. This letter is also referred to as a Form 1098.
The tax deduction amount is based on the amount of mortgage interest and real estate taxes paid by the co-op corporation each year. The Form 1098 specifies two dollar deduction amounts: one for mortgage interest and another for real estate tax. A co-op owner calculates her or his dollar deduction amount by adding these two figures and multiplying the result by the number co-op of shares owned.
Buyers, sellers and listing agents in NYC commonly refer to a co-op’s percentage of tax deduction for monthly maintenance (as opposed to the dollar deduction amount) in order to more easily compare this figure across different listings.
The percentage of tax deductibility of maintenance is calculated by dividing a co-op apartment’s annual tax deduction dollar amount by the annual sum of a co-op’s monthly maintenance payments.
The average co-op tax deduction percentage in NYC is 40% to 50% of monthly maintenance.
What Determines % of Co-op Maintenance That's Tax Deductible?
The percentage of co-op maintenance that’s tax deductible depends on how much in real estate taxes and mortgage interest is paid by a co-op building each year. Therefore, a co-op with a higher annual real estate tax and/or mortgage interest bill will have a higher tax deduction percentage.
If two co-op buildings pay roughly the same amount of real estate taxes but one has a much larger mortgage with a higher interest rate, the annual tax deduction percentage will likely be higher for the co-op with the bigger mortgage.
What Other Information Do I Need to Gather before Selling My Co-op?
When you’re listing your co-op apartment for sale, you’ll need to know key facts about your apartment such as the number of shares you own and what percent of your monthly maintenance is tax deductible.
Once you’re well underway with your sale, you’ll need more detailed information such as the building’s financial statements, a copy of the offering plan as well as the proprietary lease. The buyer’s attorney will need these materials to complete due diligence before your buyer signs the purchase contract.
Looking to buy or sell a home in New York City? Learn how you can save on commission and closing costs at https://www.hauseit.com
Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
#hauseit #hauseitnyc
https://www.hauseit.com
Interactive Co-op Tax Deduction Calculator: https://www.hauseit.com/co-op-maintenance-tax-deduction-calculator/
Co-op owners in New York City typically receive an annual co-op tax deduction letter in the mail each year which specifies how much of a tax deduction each owner can take on their personal income tax returns. This letter is also referred to as a Form 1098.
The tax deduction amount is based on the amount of mortgage interest and real estate taxes paid by the co-op corporation each year. The Form 1098 specifies two dollar deduction amounts: one for mortgage interest and another for real estate tax. A co-op owner calculates her or his dollar deduction amount by adding these two figures and multiplying the result by the number co-op of shares owned.
Buyers, sellers and listing agents in NYC commonly refer to a co-op’s percentage of tax deduction for monthly maintenance (as opposed to the dollar deduction amount) in order to more easily compare this figure across different listings.
The percentage of tax deductibility of maintenance is calculated by dividing a co-op apartment’s annual tax deduction dollar amount by the annual sum of a co-op’s monthly maintenance payments.
The average co-op tax deduction percentage in NYC is 40% to 50% of monthly maintenance.
What Determines % of Co-op Maintenance That's Tax Deductible?
The percentage of co-op maintenance that’s tax deductible depends on how much in real estate taxes and mortgage interest is paid by a co-op building each year. Therefore, a co-op with a higher annual real estate tax and/or mortgage interest bill will have a higher tax deduction percentage.
If two co-op buildings pay roughly the same amount of real estate taxes but one has a much larger mortgage with a higher interest rate, the annual tax deduction percentage will likely be higher for the co-op with the bigger mortgage.
What Other Information Do I Need to Gather before Selling My Co-op?
When you’re listing your co-op apartment for sale, you’ll need to know key facts about your apartment such as the number of shares you own and what percent of your monthly maintenance is tax deductible.
Once you’re well underway with your sale, you’ll need more detailed information such as the building’s financial statements, a copy of the offering plan as well as the proprietary lease. The buyer’s attorney will need these materials to complete due diligence before your buyer signs the purchase contract.
Looking to buy or sell a home in New York City? Learn how you can save on commission and closing costs at https://www.hauseit.com
Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
#hauseit #hauseitnyc
https://www.hauseit.com
Report form
RELATED VIDEOS
