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March 9, 2005
4 Family C of O w/ a 2 Family tax base- tax issues?
Anyone know more about how a four family house could have a 2 family tax base? I'm in contract on a house now that has that situation. I'm concerned about the tax consequences if it's determined that it should really have a 4 family tax base (it's being used as a four family building).
After buying the brownstone, I plan on renovating it to a two family. I'm addtionally concerned that filings with the DOB for such renovations and conversion will alert the Finance Board of this four family w/ a (seemingly erronously classified)2 family tax base and trigger a huge tax increase. Also, if they do find that the house should've been taxed as a four family, could they charge me with back taxes even though I would be a new owner? Any help would be very much appreciated!!
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