Monday, November 11, 2019

LLC Owner Disclosure in Condos - Avoid the Bad Advice

News media is reporting that "Condo Buyers Can Keep Purchases Secret, N.Y. Tax Officials Say in Reversal," but is that true?

For reference, see Law Alert: LLC Owners ID Must be Disclosed in Real Estate Deals where we discuss S1730 requiring disclosure of the beneficial ownership of a one-to four-family dwelling unit owned by a LLC on real estate transfer tax forms.

It is noted that the guidance referred to by the Journal cannot be located besides through the use of deduction from a careful reading of the Department of Taxation and Finance website where the term condominium was removed from its "Important Notice regarding conveyances to or from a limited liability company." That being said, real estate professionals are reminded that S1730 wasn't the only law concerning disclosure of owners of LLCs.

Instead, FinCEN had previously issued Real Estate Geographic Targeting Orders that requried such disclosure.

As a result, regardless if the Journal is correct, which remains questionable because it involves an interpretation of S1730, which is the perview of the judiciary, not the executive branch, disclosure remains required for purchases of $300,000 or more in Brooklyn, Queens, Bronx, Staten Island, or Manhattan in New York City, New York.

 

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