Friday, December 29, 2017

Tax Deductions on 2018 Real Property Taxes Assessed and Prepaid in 2017

On December 27, 2017, the Internal Revenue Service advised tax professionals and taxpayers that 2018 state and local real property taxes paid in 2017 and assessed prior to 2018 are tax deductible in 2017. It is important to note that the real property taxes must be assessed and not merely estimated prior to 2018.

The IR-2017-210 Advisory further provides an example to illustrate: County A assesses property tax on July 1, 2017 for the period July 1, 2017 – June 30, 2018. On July 31, 2017, County A sends notices to residents notifying them of the assessment and billing the property tax in 2 installments, with the first due Sept. 30, 2017 and the second due Jan. 31, 2018. Assuming taxpayer has already paid the first installment, taxpayer may choose to pay the second installment on December 31, 2017 and claim a deduction for the prepaid taxes on taxpayer’s 2017 tax return.

However, as an additional example: County B also assesses and bills its residents for property taxes on July 1, 2017, for the period of July 1, 2017 – June 30, 2018. If County B allows its taxpayers to prepay property taxes for the 2018-2019 property tax year. Despite County B’s intention to make the usual assessment in July 2018 for the period of July 1, 2018 -June 30, 2019 and its acceptance of prepaid property taxes for the same period, such prepaid taxes are not tax deductible because they are not assessed until July 1, 2018.

The IRS Advisory contradicts Governor Cuomo’s Executive Order No. 172 which was signed on December 22, 2017. Executive Order No. 172 authorized local governments to immediately issue warrants to collect property taxes by the end of the year and consequently, allow New Yorkers to prepay their 2018 real property taxes in New York in 2017. Governor Cuomo’s intent was to allow New Yorkers to enjoy the tax deductible in 2017 and circumvent the GOP tax bill which set a $10,000 cap on state and local deductions.

Nonetheless, with the IRS Advisory being just that, an advisory and not a legal ruling, the issue of whether Governor Cuomo’s Executive Order No. 172 effectively allows taxpayers to enjoy tax deductions for prepaid 2018 property taxes is still left to be determined by a Tax Court as litigation is expected.

Thursday, December 21, 2017

Title Bribes continue until February 1, 2018

DFS Statement Regarding 11 NYCRR 228

Given the important consumer protections and impact of the necessary reforms of the title insurance industry that DFS has implemented pursuant to Regulation 208, DFS recognizes that a longer implementation period may be necessary to ensure full compliance.  Accordingly, DFS will commence enforcement of Section 228.2, Prohibition on Inducements for Future Title Insurance Business on February 1, 2018.

Backyard Videos Cause Lawsuits

Wednesday, December 20, 2017

Agency Disclosure Tips: It's not what you say, it's how you say it!

Friday, December 15, 2017

12-11-17 NYS Board of Real Estate meeting summary

On 12-11-17 the NYS Board of Real Estate continued its mission of optimizing the regulation of real estate brokers in our state by holding its meeting in NYC, Rochester and Albany. To remind real estate brokers and salespersons, the public is welcome at these meetings where the public can bring comments from the floor. It’s encouraged that Lieb School students attend these meetings to have your voices heard. 

"[T]he Board has general authority to promulgate rules and regulations affecting real estate brokers and salespersons in order to administer and effectuate the purposes of Article 12-A of the Real Property Law."

A complete video of the meeting is available on YouTube. It is noted that the meeting did not start until approximately 58:40 of the video. 
As the meeting was not well attended the only substantive discussion involved statistics from a year-to-date enforcement report as follows:
- 2353 complaints
- 1880 cases closed
- 242 referred to counsel for further review
- 315 audits conducted for licensees (94% compliant)

The 2018 meeting calendar is April 3, September 25, and December 11. 

While this meeting was brief, it should nonetheless serve as a reminder to real estate brokers, salespersons and associate real estate brokers that the threat of license law complaint is real as 2353 such complaints were made so far in 2017. 

Thursday, December 07, 2017

Brand New Video CE: Property Investment ONLINE (3.5 CE Credits): ON SALE

Real estate can either be the best investment or largest liability of your lifetime. Starting with basic real estate math, this 3.5 credit real estate continuing education course teaches you how to perform fiscal assessments, isolate a property, evaluate prospective tenants and comply with local protocols. This course focuses on income producing property and is not limited to one subsect of commercial investment. After completing this course, you will be able to increase the valuation of your property listings through obtaining proper financial statements, leveraging capitalization rates, and understanding tax consequences of sales. Learn to be a real estate mogul with Lieb School.

Property Investment ONLINE is a video real estate continuing education course that satisfies 3.5 credits of the total 22.5 credits required by the NY Department of State for license renewal. This course was developed and instructed by Andrew Lieb, Esq., a premiere NY real estate litigator and compliance trainer that focuses his legal practice on real estate brokerage compliance and litigation. This course includes video segments filmed in front of a live studio audience and can be taken on Tablets, IPADs, MACs and PCs with a high speed internet connection.