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Lower Residential RPT Rate Applied to Deeds to Two Adjacent Parcels

New York City's Real Property Transfer Tax ("RPTT") rate for the conveyance of a one-to-three family home or an individual condominium unit is 1% when the consideration is $500,000 or less and 1.425% when the consideration is greater than $500,000. The City's Department of Finance ("DOF") has issued a ruling holding that the lower rate applies to the conveyance by separate deeds of two adjacent parcels of real property for $387,500 per parcel, each lot improved by a separate two-family home and constituting a separate tax lot, notwithstanding that there was a single contract of sale. According to the Department of Finance, "...the conveyance of each of these parcels using a separate deed is subject to the lower RPTT schedule applicable to the conveyance of a one, two or three family house. Given that there are separate deeds conveying each of the properties, each will be treated separately and the conveyances will not be aggregated to trigger the higher rate schedule." The Department's Letter Ruling, FLR-12-4932, dated June 6, 2013, is not posted on the DOF website.

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This page contains a single entry from the blog posted on August 30, 2013 11:34 AM.

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