Asked and AnsweredI’m selling my apartment, but I’m not a resident of New York State. Are there any special closing costs?
Yes. Another closing expense that can take sellers by surprise, is the obligation of non-residents to make an estimated capital gains tax payment to New York State at Closing. This requirement applies to parties who are not residents of New York or who do not qualify for one of the exemptions such as residing in New York for two out of the past five years. For an individual who has owned his or her apartment for many years and has significant capital appreciation in the value of the apartment, the payment (8.97% of the net gain) can be substantial. The calculation of the estimated payment should not be left for the last minute as the seller needs to provide the attorney or accountant who will be preparing the tax form with the financial data on the original purchase, in order to complete the calculation. If you can’t certify to New York State at Closing that you are a resident of the state, and if you don’t qualify for one of the exemptions, the tax must be paid at Closing…no exceptions.