Mansion Tax
I’m looking at buying a 1 family house for around $1MM in cash. I’ve seen different explanations of the mansion tax. Can anyone confirm if it is just on the sale price, or is it the sale price plus closing costs /taxes (if over $1MM)? Any idea on what the closing costs would be on…
I’m looking at buying a 1 family house for around $1MM in cash. I’ve seen different explanations of the mansion tax. Can anyone confirm if it is just on the sale price, or is it the sale price plus closing costs /taxes (if over $1MM)?
Any idea on what the closing costs would be on a home this price? I know that no mortgage avoids many taxes and costs, but would appreciate a rough figure.
Wine Lover — Real Estate *transfer taxes* or *flip taxes* exist EVERYWHERE!!!!! The difference is, that NYC has decided to up the ante for folks that CAN AFFORD IT.
Guess what? I really don’t have a problem if taxes are making people stop for a millisecond and evaluate the price tag on something. “Wait, there’s a ‘mansion tax’ on this million-dollar property?! Oh — maybe a MILLION DOLLARS is actually a lot of money!”
Who’d a thunk?
Also — I have to agree with you. High sales taxes are a terrible thing. They are most harmful the poorer you are. The quality of life of someone making $500,000 is almost not affected by sales tax (be it 4% or 15%) — but the guy making $25,000… guess how that figures into his income? The proportional effect is staggering.
Income taxes? Absolutely… let’s get rid of them. AND RAISE PROPERTY TAXES TO AN EQUITABLE LEVEL!!!
But I am truly saddened that you had to pay transfer taxes on your multi-million dollar transactions. It’s heart wrenching. Have you been able to recover? I hope so, sweetums.
tax is obscene and doesn’t exist most places (i don’t know that exists anywhere else). if you are buying a new condo and are paying the transfer taxes yourself, then i was under the impression that the taxes are included. i looked hard to get under this thresh hold. i had to pay the transfer taxes 2x – as a seller of my house and as a buyer of my condo. it’s gross.
i pay city income tax, corporate tax, state income tax, sales tax blah blah blah this city is taxing us to death
A million bucks is a MILLION BUCKS!
I would argue that the transfer tax should be LOWER, not higher. You have enough money to pay a million dollars for a house (and the tax code has decided your property tax is going to be woefully inadequate for the purposes of supporting the city’s services), there should be no problem paying a 1% transfer tax!
I’m not a bitter renter… If I were an owner, I would be equally as disgusted with the whining here. Oh, Woe Is Me! I might be liable for paying $10,000 on top of the ONE MILLION DOLLARS I just paid someone in cash. They already are bleeding me dry… I have to pay the tax man $3500 EVERY YEAR for this house! How dare they!
Cry me a river… jaysus.
Oh yeah, take the advice above. Make sure you involve your attorney and ask him lots and lots of questions. They have mansion taxes to pay too, ya know!
t6, really. Why are you equating illegal behavior (PA car) with simply attempting to minimize one’s tax burden, which behavior has been upheld by the courts as legal and expected for a hundred years.
Meanwhile the OP may be confused but that Corcoran link is useful. The tax is 1% of the ENTIRE sale when it is over $1 million. Closing costs are meaningless.
A million bucks isn’t what it used to be, t6. Buy a house and shop sounding like a bitter renter.
(OP, don’t forget to take the federal homebuyer’s tax credit if your income allows, and let us know. Just so T6 can bitch about that too).
The Mansion tax figure is outdated. One million does not buy you anything close to a Mansion in NYC anymore There has always been talk of the threshold being raised but with those fools in Albany I wouldn’t bet on it.
Transfer taxes are the responsibility of the seller. If the parties agree that the buyer will reimburse the seller for the transfer tax, then this reimbursement is part of the “consideration” paid to the seller and on which the buyer’s mansion tax is calculated. But in the ordinary case where the seller pays the transfer tax, the mansion tax is calculated on the purchase price alone.
Someone buying a residence for $1mm probably would probably have more 300-400K in cash, not $1mm. That hardly qualifies as “rich” in this city, just as $1mm will not buy you a “mansion.” And–are you suggesting the OP should pay $1,000,001 to enjoy the privilege of refilling our city’s coffers to the tune of $10,000?
Everyone loves to tax someone else.
The poster is trying to save money.
Those who are urging the poster to pay the mansion tax are not being helpful.
That extra 10k might be the difference between being able to afford the home and not being able to afford it.
Feral- did you pay your own transfer taxes or did the seller? If you paid the transfer taxes and the price of the home was $999K you should have paid a mansion tax.
New York City and New York state transfer taxes that amount to 1.425% and $4.00 per thousand of the purchase price. At $999K your transfer taxes would amount to a bit over $18K which would make the taxable sale price over $1M.
Original poster, feel free to check with a real estate attorney to verify the correct answer.
I agree, pay the mansion tax, $10K is not the biggest sum you will have to pay during the transaction.