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If a new shareholder has closed before December 31 of a year and the apartment purchased was owned by a shareholder who has been receiving the Tax Abatement - passed thru as a credit to maintenance fees, is the new shareholder entitled to the Tax Abatement when next passed thru to eligible shareholders in the following year?
I know that if the previous shareholder was NOT eligible, the new shareholder will NOT receive any Tax Abatement passed on in the first year after closing.
Please advise on NYC DOF policy.
I believe eligibility for the abatement is based simply on your status on the recording date. January 5th sounds very familiar.
Marty and I disagree on this so you should do further research Ask your MA, and I think the DoF website has information that might answer your question.
Steven424 - Here is the info from the NYC DOF website. Maybe you and others reading this can review it and see how you interpret it.
https://www.nyc.gov/site/finance/benefits/landlords-coop-condo.page
In the REQUIREMENTS section, it states, "You must have purchased the unit on or before January 5 to qualify for the abatement for the upcoming tax year. If the unit was purchased after January 5, you can apply for the next tax year."
I don't think the recording date comes into play but I could be mistaken.
If a new shareholder has closed after Jan 5 of calendar year n, the prior owner's name will be listed for that apt and its shares on the Co-op Tax Benefits Report of fiscal year n/n+1. The dollar amount of the benefit, which a co-op typically distributes or credits no later than June of year n+1, is a benefit to the apt unit - not a person - per the instructions on the first page of the Co-op Tax Benefits Report.
The new shareholder of that unit refers to their sales contract and contract riders to determine whether and how they are responsible to apportion to the seller any of the property tax benefit received from the co-op. The sales contract may state the amount to be apportioned is first reduced by any assessment amount.
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My understanding is that in order for a new shareholder to receive the abatement, they must first reside in the co-op for one full yearly cycle of Jan 1 through December 31. (Though I am not 100% sure about Jan 1. It might be Jan 5 through Dec 31).
Assuming it's Jan 1...If they closed on Dec 31, 2022, they will have met the Jan 1 through Dec 31 in 2023, so they'd be eligible for the abatement in 2024.
If they closed on Jan 12, 2023, then they will only meet the full 1 year residency in 2024, so they wouldn't be eligible to receive the abatement until 2025.
Steven 424 or any of the knowledgable people on this website - Please correct me if I'm mistaken about the dates.
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