So, an update: I bumped into Fred Weinstein, who works down the hall from me, who said he saw this thread and suspected I was incorrect. As it turns out, I am incorrect.
Implied in Section 11-1701 of the NYC Admin Code is the idea that the City cannot impose the PIT on non-residents; it can only impose the GCT, UBT, or RPTT on businesses and real property as applicable. Therefore, although it shocks me personally, non-residents would not pay PIT on these sales, even though the income is sourced to NYC.
Sorry, everyone, for any inconvenience posed by my original answers.
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Matthew E. Rappaport, Esq., LL.M.
Vice Managing Partner
Chair, Taxation Group
Falcon, Rappaport & Berkman PLLC
(516) 558-3377
mer@frblaw.com------------------------------
Original Message:
Sent: 04-22-2022 09:19 AM
From: Matthew Rappaport
Subject: Sale of NYC property by an partnership
You are looking at the form for UBT. The NYC tax would not be UBT in this instance. The NYC tax would be the city's personal income tax. The income is sourced to New York City.
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Matthew E. Rappaport, Esq., LL.M.
Vice Managing Partner
Chair, Taxation Group
Falcon, Rappaport & Berkman PLLC
(516) 558-3377
mer@frblaw.com
Original Message:
Sent: 04-21-2022 05:25 PM
From: Paul Tusa
Subject: Sale of NYC property by an partnership
Hi Everyone,
Hope you survived tax season!
I have a client who sold rental real estate in NYC. The property was held in a partnership. Not an LLC. And the partners are out of state residents.
According to form NYC-204 instructions, rental activity is not taxable in NYC. No NYC-204 reporting requirements. I am assuming you agree with this.
Is the gain on the sale of the property taxed in NYC? The instructions seem to indicate no but I want to be 100% sure. I am looking at page 3, (6).
If no capital gains tax on form NYC-204 then the taxpayers escape taxation in NYC completely?
Thank you in advance for your reply, hopefully while you are sitting somewhere having Pina Coladas.
Paul
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Paul Tusa CPA
TUSA & ASSOCIATES, CPA, PC
N Bellmore NY
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