Archive for the ‘3) Real Estate Law’ category


August 12, 2014

The purpose of the various Industrial Development Agencies  (IDAs) in the state of New York is to promote economic development within each of their respective counties.  Since 1969 the IDAs have been offering various types of financial incentives for business projects which are focused on the creation and retention of jobs and economic development, such as opening a new business, expanding or renovating your current business, or leasing or purchasing a new facility.  Project sizes range from one hundred thousand dollars to tens of millions of dollars.  In order to qualify for IDA assistance, your company would need to satisfy eligibility requirements and demonstrate a need for assistance.

Below is a list of some of the Financial Incentives the IDAs have to offer which your business may be eligible for.  

1.  Real Estate Tax Abatements

 The IDAs can transfer a portion of the value of its exemption from real property taxes to your company. To do so, the IDA takes temporary ownership interest in the property your company will use for the project, for the period of time during which the incentives are being provided. A “PILOT” (Payment In Lieu of Taxes) program is utilized to make reduced payments instead of real property tax payments. The PILOT program provides your company with valuable certainty as The PILOT payment, unlike actual real estate tax payments, will not rise above a set amount for the term in which the IDAs haslegal ownership of the property.

2.  Sales and Use Tax Exemptions

For projects in which construction or equipment purchases occur, the IDAs may issue a sales tax exemption letter for eligible construction materials, furniture and equipment your company purchases in connection with its project. This provides your company with a savings of at least 8 1/2 percent.

3.  Mortgage Recording Tax Exemptions

Your company may be entitled to a full exemption from mortgage recording tax for any mortgage recorded in connection with a project. The savings realized can be substantial.  For example, for a mortgage with a principal amount of three million dollars, the savings would be $31,500 (1.05% current mortgage tax rate in Nassau and Suffolk Counties x $3,000,000)

4. Tax Exempt Financing

The IDAs are authorized to issue tax-exempt bonds, and can act as a financial conduit by making the bond proceeds available to your company to finance an expansion. If your project meets the requirements for tax-exempt financing, your company may be able to obtain below market interest rates. Certain bonds are exempt from New York State and local income tax, while others are exempt from federal, New York State and local income taxes. An analysis will be undertaken by the IDAs to determine whether your project meets the requirements for tax-exempt financing established under the Internal Revenue Code.

The IDAs will undertake a wide variety of projects involving commercial or research facilities, as well as manufacturing, industrial or warehousing facilities, and is open to proposals from all economic sectors. If you are working on or considering a project which you think may be eligible for the financial incentives offered by the IDAs, or are just interested in hearing more about the financial incentives the IDAs have to offer, we will be happy to discuss them with you in further detail and guide you through the application process.

NYS STAR (SCHOOL TAX REDUCTION) REBATES — Re-registration is Required

August 22, 2013

On August 19th New York opened the re-registration period for the “STAR” property-tax rebate for upstate homeowners, but downstate homeowners will have to wait a few more weeks.

The massive process of sending notifications to about 2.6 million homeowners is being carried out in stages.  Notices about how to re-register will be sent to residents of Long Island, New York City and Westchester County between Sept. 16 and Oct. 4.

Regardless of where you live, homeowners will have until Dec. 31 to re-apply for the STAR rebate.


Gov. Andrew M. Cuomo and state legislators passed a law last spring requiring the re-registration. They are trying to reduce fraud indicating that too many people have been receiving improper STAR (School Tax Reduction) rebates for second homes. The deductions are intended for primary residencies only.  Under the new law, the state will create a database that will make it easier to spot cheaters.

The STAR program is open to owner-occupied, primary residences, where the combined income of resident owners and their spouses is $500,000 or less. The average STAR benefit is $700.

Once the enrollment period begins for a region, residents will receive a letter containing a STAR “code” that will be used to register.

Senior citizens who are already enrolled in the “Enhanced STAR” program aren’t affected by the new STAR requirement. However, they must continue to apply annually for Enhanced STAR or participate in the tax department’s income verification program.

For more information on the re-registration, click here: STAR REBATE INFORMATION

If you need any assistance or have any questions regarding the STAR re-registration, or have any legal issues of concern you would like to discuss, please contact our firm.

Selling Real Estate? Is A Tax Deferred Exchange (1031) Right For You?

September 8, 2009

Have you or your family owned an investment property for a long time but are afraid to sell it because of the income tax consequences? If so, the time may be right to cash in, secure your profits and not pay any tax on the gain.

Thanks to §1031 of the Internal Revenue Code, a properly structured transaction will allow an investor to sell a property, to reinvest the proceeds in a new property and to defer all capital gains taxes. Such a transaction is commonly referred to as a “tax deferred exchange” or  a “1031 exchange.” The procedure for facilitating the exchange is conceptually fairly straightforward, however the process may not be.

In order to accomplish a successful 1031 exchange, there are three conditions that must be met, and they are as follows:

1.    There must be an actual exchange, not just a transfer of property for money only;
2.     The properties exchanged must qualify, and be of “like-kind”; and
3.     The time requirements must be strictly followed.