Home Buying in 10011>Question Details

Althea0372, Home Buyer in New York, NY

On coop listings in NYC are the 'real estate taxes' shown on the listings monthly or annual taxes?

Asked by Althea0372, New York, NY Sat Apr 2, 2011

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In NYC coops, you pay maintenance not common charges and real estate taxes as you would in a condo. Included in the maintenance are your units share of the Real Estate Taxes, they divide the taxes for the entire building to a unit per share, and multiply your number of shares by the per share amount. Owners receive a 1099 at the end of the year that will tell you what your share of the Real Estate Taxes are, as well as your allotted amount of any interest paid for the overlying building mortgage if the building has one, both are deductible. The percentage of the maintenance that is deductible varies from building to building.
1 vote Thank Flag Link Sat Apr 2, 2011
Generally in co-ops, taxes are included in the monthly maintenance...
1 vote Thank Flag Link Sat Apr 2, 2011
Usually, the listing would just say how much is monthly maintenance for a coop apartment. They do not usually break it down into "maintenance" and "taxes". You would need to further check what percentage of maintenance is tax deductible to find out how much are monthly taxes.
Krystyna Rachtan, Licensed Real Estate Broker
Phone (212) 991-8072 Email: kr@nyhome.com
295 Madison Avenue, 12fl, New York, NY 10017
0 votes Thank Flag Link Sun Oct 19, 2014
In NYC, co-ops pay a monthly "maintenance". Maintenance is composed of three parts; cost of maintaining the building (not tax deductible), Real Estate taxes (completely tax deductible), and Underlying mortgage (partially tax deductible). The city applies taxes to the entire building because ownership in a co-op is transferred by a stock and lease which determines the amount of shares allocated to an apartment, there is no block and lot number or deed assigned to co-op apartment as in a condo. The managing agent of the building is in charge of computing your maintenance bill according to your shares and billing you.
0 votes Thank Flag Link Tue Feb 26, 2013
Its usually shown as a monthly cost every month.
0 votes Thank Flag Link Tue Feb 26, 2013
The coop corporation pays the RE Taxes for the building in its entirety and then each shareholder pays his portion of the overall tax burden (based on the allocation of shares) in his monthly maintenance payment. There is no separate RE tax bill to the individual shareholders of a coop.

Conversely, condo buyers do pay RE taxes directly to their municipality, in this case NYC. In most financed purchases, the lender will require monthly contributions of the annual tax bill to be paid along with your monthly mortgage payment and those monthly tax contributions will be held by the lender in escrow and then the lender will pay the taxes twice annually to the municipality from that escrow account. In purchases without lender financing, the condo owner can usually choose one of a several payment options: annually, twice annually (most-common), or quarterly. I don't believe monthly payments are an option in the City of NY yet on virtually all condo listings, one will see a monthly figure listed for RET (RE taxes). This is simply so the consumer can estimate their total monthly costs and see if it feels manageable to them. But from a cash flow perspective, unless you are financing, your RE taxes will not be PAID monthly.
0 votes Thank Flag Link Sun Jan 27, 2013
In Manhattan co-op's taxes are included in the monthly maintenance. The numerical deduction is sent to the owner at the end of the year by the accounting firm of the co-op corporation.
0 votes Thank Flag Link Fri Jan 4, 2013
coop listings show monthly maintenance and no real estate taxes. However, maintenance numbers reflect a pro-rata share of real estate taxes a cooperative corporation pays for the building allocated to the particular apartment. Each coop have issued a certain number of shares and each individual apartment owner owns a portion of such issued and outstanding shares (a stock certificate would specify the exact number).
0 votes Thank Flag Link Fri Sep 14, 2012
Listings show the monthly tax liability of the share owner as well as all other costs represented as a monthly maintenance cost for the sake of simplification. Just think of it as paying rent.
0 votes Thank Flag Link Wed Apr 27, 2011
Hey there,

In coops the taxes are included in the maintenance which is normally paid monthly. have your agent check to see what proportion of the maintenance is tax deductible, can make quite a difference to your cost of ownership.

0 votes Thank Flag Link Sun Apr 3, 2011
Co-op listings should always show the monthly maintenace for the apartment listed. A portion of that monthly maintenance figure includes the real estate tax assessed for the apartment. (The rest of the maintenance covers the portion the Tenant Shareholder pays toward the building's underlying mortgage, if any, plus the interest paid by the Tenant Shareholder on the building's underlying mortgage. The maintenance also covers your share of the operating expenses for the building, such as staff salaries, water, electricity, fuel, etc.) Ideally, the should also indicate "Tax Deduction", such as "T.D. 50%". That means that 50% of your annual maintenance is tax deductible because that portion of your maintenance was paid as real estate tax and mortgage interest. For example, if your monthly maintenance is $1,000, therefore your annual maintenance is $12,000. If the tax deduction permitted by the co-op is 50%, then
$6,000 (50% of the annual maintenance paid ) of your income is sheltered from taxation by claiming the tax deduction--just as you also deduct the taxes and mortgage interest paid to your bank if you financed your co-op purchase.
0 votes Thank Flag Link Sun Apr 3, 2011
For co-ops, the taxes are included in the maintenance. The tax deductibility listed includes deductions allowed from property tax and the building's underlying mortgage interest. Condos list taxes separately and it is monthly. Keith Marder, Halstead Property. Kmarder@Halstead.com
0 votes Thank Flag Link Sat Apr 2, 2011
Hi Althea, theR E taxes on a coop are included as part of your maintenance-that is why it is 40%-50% tax deductible. Condos do not include taxes in the common charges, the R E Taxes must be paid by each owner. They should be listed per annum-but some put monthly payment. Terry K 718-614-3167 cell or email me Therese.Korahais@elliman.com
0 votes Thank Flag Link Sat Apr 2, 2011
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