What is the typical flip tax in New York City? NYC Flip Tax FAQ: https://www.hauseit.com/flip-tax-nyc/ <br /> <br />If you are considering selling an apartment, you've probably heard that most co-ops have an additional closing cost for sellers called a flip tax. Both co-ops and condos can have flip taxes, however it's less common for a condo building to charge a flip tax. <br /> <br />NYC Seller Closing Costs Overview: https://www.hauseit.com/closing-costs-nyc/ <br /> <br />So, what is a flip tax in New York City real estate? <br /> <br />A flip tax is a transfer fee charged by a co-op (or condo) on the sale or transfer of an apartment. The flip tax varies by building and is typically documented in its proprietary lease and by-laws. Flip taxes are usually paid by sellers, although the sale contract will specify whether the buyer or seller has agreed to pay the flip tax. <br /> <br />What's the typical real estate commission in NYC? https://www.hauseit.com/whats-typical-real-estate-commission-in-nyc/ <br /> <br />Thanks to New York City's average 6% real estate commission, closing costs for sellers are sky high and can often exceed 8% of the sale price. <br /> <br />Although you cannot avoid paying a flip tax if your building charges one, there are ways for you to significantly reduce or eliminate the traditional 6% real estate commission when selling. <br /> <br />You can save up to six percent in commission by listing For Sale by Owner through Hauseit's agent-assisted Flat Fee RLS listing service. If you don't have time to sell FSBO, consider listing with a full-service, REBNY member listing agent through Hauseit for just 1% commission. <br /> <br />How to sell For Sale by Owner in NYC: https://www.hauseit.com/how-to-sell-for-sale-by-owner-in-nyc/ <br /> <br />Sell in NYC with a full-service agent for just 1%: https://www.hauseit.com/agent-managed-listing/ <br /> <br />How much is the average flip tax in New York City? <br /> <br />The average flip tax in New York City is 1-3% of the sale price. Flip taxes vary by building and can be structured in any of the following ways: <br /> <br />Percentage of the gross sale price <br />Set dollar amount per co-op share owned <br />Flat-fee dollar amount <br />Percentage of sale profits <br /> <br />Can a co-op or condo in New York City change its flip tax? <br /> <br />Yes. A co-op or condo can change its flip tax by amending the proprietary-lease and building by-laws. Any change to the flip tax would require approval from a majority of the shareholders. <br /> <br />Are real estate flip taxes in New York City tax deductible? <br /> <br />Yes. You can usually reduce your taxable capital gains as a seller by subtracting the flip tax as an additional cost of the sale (alongside broker commissions, for example). We suggest you consult your attorney and tax professional for specific advice. <br /> <br />Are flip taxes payable on transfers to family members? <br /> <br />Not usually. Most co-ops will waive the flip tax if you are transferring your apartment to a spouse, permanent companion, children, or immediate family. <br /> <br />For more New York City Real Estate insider tips and tricks, visit https://www.hauseit.com
