This is an update to a prior notice regarding Tax Law Section 1409 and the requirements involving transactions where the purchaser or seller is a Limited Liability Company (LLC).
New York State has recently amended their website by removing “condominium units” from property types that are required to disclose all “Natural Persons” associated with an LLC when conveying or purchasing a 1-4 family dwelling.
The current requirements for disclosure are as follows:
Properties within New York State
– Disclosure is required on all 1-4 family dwellings, excluding condominium and cooperative apartments (Mixed use properties which include a 1-4 family residence also require disclosure).
– The identity and addresses of all “Natural Persons” associated with the LLC must be documented. If an LLC, corporation or other entity is a member of the LLC then their identities and addresses must also be disclosed. You must continue to drill down until all “Natural Persons” are identified.
– In the event you have a single member LLC, the name and EIN number of the LLC and the name and social security number of the sole member must be disclosed in Schedule A of the New York State TP-584 Form.
Properties within the 5 Boroughs of New York City
– Required on all property types, including condominium units and commercial properties.
– Only the names and social security numbers or EIN numbers of the members of the principal LLC are required. It is not necessary to drill down beyond this level.
– If your client is party to a transaction within the 5 boroughs of New York City, 2 separate addendums must be completed. One for the NYC RPTT form and one for the New York State TP-584.
If you have any questions, please contact our Legal Department at 1-800-281-8485 or Info@JudicialTitle.com.