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Westchester County Real Estate Listings, Sales, Open Houses, Sales, Market Trends, News & Information
by Phyllis Lerner, Broker/Owner of Legends Realty Group LLC
Tarrytown, Sleepy Hollow and Pocantico Hills, NY 10591
http://westchester-real-estate.us

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NY State is considering "Flip Tax"...

New York is considering an Anti-Flipping Bill...

 

Buying a house in a state of disrepair and fixing it up to sell it shortly thereafter for a big profit is a dream that has been fueled by a number of TV shows in recent years. National sales statisics show that over 200,000 U.S. homes were bought and resold within a 12-month period in the year 2017 alone.

 

But, if the State of New York has its way, it might soon be harder to make anything on such an endeavour. There are currently two bills on the table: Assembly Bill A5375A and Senate Bill S3060E. Each of them “Imposes a tax on the transfer of certain real property within two years of the prior transfer of such property." They are actually aimed at preventing real estate speculation and would very much affect flippers. Both bills are currently in their respective State Committees.

 

Their goal is to add a "Flip Tax" on real estate sold within two years of purchase anywhere in the State of New York. Specifically, would-be flippers would be looking at a 20% tax on real estate that’s sold within 12 months of the initial purchase and a 15% tax on those properties that are sold within two years. That would certainly eat heavily into the anticipated profit and reduce or do away with flipping.

 

However, these bills could also severely hamper real property improvements throughout the State with more dilapidated homes rotting slowly into the ground because there is no profit to be made on fixing them.

 

What is your take of these efforts by the State of New York?

Posted: Wednesday, April 1, 2020 11:19 AM by Phyllis Lerner

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