Do I Need to Pay Transfer Taxes When Transferring Title? by Natalia A. Sishodia

Описание: Do I Need to Pay Transfer Taxes When Transferring Title? by Natalia A. Sishodia

A deed transfer attorney in Manhattan plays a central role in managing transfer taxes, preparing documents, and protecting property rights during real estate transactions in New York City. Sishodia PLLC, led by Natalia A. Sishodia, Esq., LL.M., assists clients with Manhattan real estate matters involving condominiums, co-ops, residential property, commercial property, and multi-family property. Whether a transfer involves a sale, gift, inheritance, or restructuring of ownership, each transaction must comply with New York State and NYC requirements.

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Under New York Tax Law § 1402, the NYS Transfer Tax applies to conveyances where consideration exceeds $500. New York City also imposes the Real Property Transfer Tax (RPTT) on transfers over $25,000. Depending on the property type and price, NYC RPTT rates range from 1% to 2.625%. Additional obligations may include the mansion tax on residential property of $1 million or more, as well as the supplemental tax and additional base transfer tax for certain high-value transactions. The rules referenced in Form TP-584-NYC-I guide how these taxes are calculated and reported.

Consideration does not only mean cash. Under New York Tax Law § 1401(d), consideration includes mortgage assumption, cancellation of debt, liens, or other encumbrances attached to the property. A transfer labeled as a gift may still trigger NYS Transfer Tax and NYC RPTT if the grantee assumes an existing mortgage. Both the grantor and grantee must understand how these definitions affect tax liability before completing a title transfer.

Certain transactions may qualify for exemptions. Transfers involving an executor, estate planning arrangements, or changes in ownership structure—such as moving property into a Limited Liability Company (LLC), corporation, partnership, or trust—require careful legal review. Cooperative housing stock shares and proprietary lease transfers in a co-op also fall under specific state and city tax rules. A 1031 tax-deferred exchange, transfers to tenants in common, or inheritance-related conveyances may carry distinct filing and reporting obligations.

Failing to comply with New York Tax Law § 1416 can result in penalties, interest, and a tax lien. The NYC Department of Finance may place a lien on the property for unpaid transfer taxes. The Office of the City Register can refuse to record a deed if taxes remain unpaid, delaying or preventing a lawful conveyance. Recording through the Automated City Register Information System (ACRIS) ensures the transaction becomes part of the public record and protects ownership rights.

Sishodia PLLC handles deed preparation, deed recording, and transfer tax filings for clients across Manhattan and New York City. Natalia A. Sishodia works with buyers, sellers, investors, and families to review consideration, calculate NYS Transfer Tax and NYC RPTT obligations, and structure transfers in compliance with state and city law. The firm is located at 600 Third Avenue, 2nd Floor, New York, NY 10016. To discuss your deed transfer, call (833) 616-4646 and receive guidance tailored to your transaction.

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