The City of New York offers tax benefits such as exemptions and abatements to a variety of groups, including Condominium unit owners and Cooperative shareholders. These incentives are often designed by the city to provide affordable housing, encourage renovation, increase construction projects resulting in job creation, and a number of other objectives. The deadline for your managing agent to file for the initial abatement or submit any changes to the Department of Finance is February 15th each year. We’ve rounded up the most pressing deadlines and resources so you can be sure the information is submitted on your behalf on time.
Cooperative and Condominium Tax Abatement
This tax abatement is applied as a credit to the amount of taxes you owe on your property. In order to qualify, the condo or co-op unit must be the owner’s primary residence. You must have purchased the unit on or before January 5th to qualify for the abatement for the upcoming tax year. (e.g. the purchase date must have been on or before January 5, 2021 for the tax cycle beginning on July 1, 2021 and ending June 30, 2022). If the unit was purchased after January 5th, you can apply for the next tax year.
The unit must not be receiving any of the exemptions such as a J-51, 420c, 421a, 421b, 421g or other exemptions.
WHAT FORMS WILL MD SQUARED AS A PROPERTY MANAGEMENT COMPANY COMPLETE ON YOUR BEHALF?WHAT FORMS WILL MD SQUARED COMPLETE ON YOUR BEHALF?
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WHAT FORM(S) SHOULD YOU BE PREPARED TO COMPLETE, SHOULD YOUR BUILDING QUALIFY
1. First-Time Condominium/CooperativeAbatement
The MD Squared Compliance Department will circulate an Initial Filing Confirmation of Primary Residence Form beginning in the Fall for the following tax year. The deadline to return the form to the MD Squared Compliance Department is by the second week of January. Following the deadline, the Compliance Department will complete the application for the entire building.
Relevant Forms:
Unit Owners or Shareholders should complete MD Squared’s Condominium/Cooperative Tax Abatement – Initial Filing Confirmation of Primary Residence form.
The managing agent will complete the Department of Finance Condominium/Cooperative Property Tax Abatement Initial Application
Deadline to File with the DOF: Feb 15th
2. Tax Abatement Renewal
Managing agents are required to submit a renewal form or change from for their properties every year. If no changes are needed, the renewal form is filed to keep the property eligible for the tax benefit. A change form is filed when the managing agent reviews the responses they received and discovers a discrepancy with the
Department of Finance benefit breakdown report. Examples of a discrepancy can include new ownership, missing owner information, and incorrect or missing primary residency status. Each fall, the MD Squared Compliance Department will circulate a Confirmation of Primary Residence Form to be completed and returned to the MD Squared Compliance Department by each Unit Owner or Shareholder. This form is intended to keep a historical record of a homeowner’s continued eligibility for the abatement in the event one is incorrectly removed from the abatement schedule. We strongly urge Unit Owners and Shareholders to complete the form every year and return it by the second week of January, even if no information has changed.
Relevant Forms:
Unit Owners or Shareholders should complete MD Squared’s Confirmation of Primary Residence Form
The managing agent will complete the Condominium/Cooperative Property Tax Abatement Renewal and/or Change Form
Deadline to File with the DOF: Feb 15th
Depending on your age and annual income, you may also be eligible for a Homeowner’s Tax Exemption on your property. Rather than apply a credit to your existing taxes, tax exemptions reduce the amount of taxes you owe by reducing the perceived value of your property. New York offers exemptions to homeowners, condominium unit owners, and cooperative shareholders who are senior citizens, veterans, disabled, victims of criminal activity, or members of the clergy. The resident(s) must apply for these tax exemptions themselves. MD Squared is unable to apply for these on your behalf. The deadline for Tax Exemption applications is March 15th. Mark your calendars!