Home Selling in New York>Question Details

Veronica, Both Buyer and Seller in New York, NY

what are nyc closing costs, including capital gains tax, for a condo?

Asked by Veronica, New York, NY Sun Oct 14, 2007

I'm hearing so many different stories about closing costs, especially capital gains tax. Can anyone please tell me EXACTLY what they are? Is it 10% to fed., city, and state??? The sales price is 1.47M. Thank you so much.

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9
Veronica,

The information you are seeking is readily avaiable from your Realtor or from your real estate attorney. I've provided a link to an attorney's website regarding nyc and nys tax rates on the transfer of property.

Ute, listed most of the fees, but there's also a mansion tax - 1% of the sale price - when the sale is $1 million or more. There are also loan closing costs, but you'll have to consult your lender for these. Add attorney's fees, prepaid maintence, common charges and deposits to the building and insurance for your apartment.
1 vote Thank Flag Link Sun Oct 14, 2007
Hello Veronica. There are usually city transfer taxes, title insurance premium, and attorney fees or escrow fees. Capital gains taxes are not closing costs. They are withholdings when someone sells an investment property. If the condo was used as your primary residence, capital gains taxes are typically not withheld at the time of closing. You have to report the sale with your tax return and pay the taxes then. You may have to file a quarterly tax return for estimated taxes to avoid penalties. You should talk to your CPA about what needs to be done. How much capital gains taxes you'll owe is also a question for your CPA.
As far as actual closing costs, your attorney should be able to give you an estimate.
Web Reference: http://www.theMLShub.com
1 vote Thank Flag Link Sun Oct 14, 2007
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
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Hi Veronica,
If you already have already determined the purchase price your real estate attorney will be the only person who can provide you with a good estimate of the closing costs. Your accountant - once familiar with the terms of the sale - can tell you about any possible capital gains implications. The Realtors here are (myself included) are not qualified to give advise on this unless they are also CPAs.
Cheers
Rob
0 votes Thank Flag Link Fri Jan 21, 2011
Is there an additional tax if I sell my home for more than $million
0 votes Thank Flag Link Mon Jan 3, 2011
I am not a CPA and you should consult a CPA or tax attorney regarding this but if you are a seller, your closing costs usually consist of your attorney fees, realtor fees, and NYS transfer tax. Your homeowner's association or management company may also have fees but those are specific to whatever development you're in. New York State transfer tax should be about $6K. With respect to your capital gains tax, you need to take the original price of the unit, including costs of purchasing, add any capital improvements, deduct any amortization you may have taken over the time you lived there - that is your cost basis. Then take your total sales price, minus costs and then deduct the cost basis. If this is your primary residence you get a $250K exemption for each person on the deed. Whatever the profit from all that is what could have capital gains exposure. I believe it is 15% federal and 5% NYS. However, if you take the profit and do a 1031 exchange, you could negate or delay the capital gains tax. You should certainly speak with your accountant about this.
0 votes Thank Flag Link Mon Jan 19, 2009
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0 votes Thank Flag Link Mon Jan 19, 2009
Veronica,
You have yourself listed as a buyer and a seller, so those are two different circumstances?
As Ute mentions your lawyer ought to be able to provide with the closing cost information and if you are still shopping, with additional info from your agent, a rough estimate of the closing costs.
As you mention capital gains, I suppose you are asking as a seller. In either case I hope you have your own attorney (not the buyer's) that specializes in NYC real estate as there are many unique factors to NYC Real estate closings. I mention that because many years ago my great-aunt was induced by an unscrupulous real estate agent, to sell a valuable piece of property ( in another area) and to use the buyer's attorney and did not receive the proper advice. Please let me know if you would like a list of reputable Manhattan real state attorneys.
Web Reference: http://joliemuss.com
0 votes Thank Flag Link Mon Aug 25, 2008
CLOSING COSTS AND CAPITAL GAINS ARE TWO SEPERATE ISSUES. City and state transfer taxes (1.45% if the property is priced under $ 750K, 1.845 if the property is priced above $ 750K) plus transfer stamps (minimal). Plus legal fees. Capital gains taxes are determined by the IRS, not the city and state. If you owned and lived in the property (primary residence) for 2 of the last 5 years, you can keep up to $ 250K (single) or $ 500K (married) in net profit before paying capital gains taxes. If it is an investment property, short term capital gains taxes (owned less than one year) are 28% or more, if you owned the investment property for more than a year, they are 15%. HOWEVER, if you invest your profits from an investment property into new investment property(s)...tax-free exchange, you avoid capital gains taxes. TALK TO YOUR ACCOUNTANT ABOUT CAPITAL GAINS TAXES FOR YOUR SPECIFIC CIRCUMSTANCES. I always advise clients to expect to pay a total of about 2% of the sales price in closing costs...plus brokerage fees in properties priced above $ 750K.
Web Reference: http://www.elliman.com/gjm
0 votes Thank Flag Link Sun Aug 17, 2008
The link in the answer from Aileen-Manhattan is for transfer taxes, not capital gains taxes. Can someone please answer Veronica's question...what are the capital gains tax rates for NYC, NYS and Federal? Also, Veronica, Corcorans has useful information on their website...
http://www.corcoran.com/guides/index.aspx?page=ClosingCosts
0 votes Thank Flag Link Wed Aug 6, 2008
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