Federal Tax

Federal Tax and NYC UBT tax

  • 1.  Federal Tax and NYC UBT tax

    Silver Most Valuable Member
    Posted 01-15-2016 12:12 PM

    I have a client (a partnership LLC) who has real estate in Manhattan.  We previously operated it as a parking lot and rental properties subject to NYC UBT and social security tax (Parking operations only). In July 2014 we entered into a development project with an outside developer.  We shut shut everything down and as of 1/1/2015 we are receiving $ 500,000 per year as a license fee from the developer until the project is complete.

    My question:  Is this license fee subject to NYCUBT and Social Tax?  I see the fee being investment income or maybe a royalty?

    any feedback?

    Gary Geienheimer

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    Gary Geisenheimer
    Enrolled Agent
    Woodbury NY
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