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If a shareholder bought an apartment in December 2019, who gets the tax abatement for the 2019/2020 tax year?
Regardless of any fine points of law or regulation, to me the ethical answer is, whoever pays the co-op assessment deserves the abatement. Most co-ops debit the assessment in the same month they credit the abatement, so it becomes a wash for whoever is the owner of record at the time of the transaction.
I'm still trying to figure out why the is even an issue.
If you don't know the correct answer pls it is confusing when you post.
Fair enough, DM. :-)
In almost every instance, the annual abatement is distributed to shareholders in the form of a credit against what is due for monthly maintenance. Unless there is wording to the contrary in the sales contract, whoever owns the stock certificate when the credit is issued receives the benefit of the abatement.
By itself, the benefit from the abatement follows stock ownership and does not stay vested with the seller after the stock transfer. If the issue was addressed in the contract of sale, both parties are bound by the terms of the contract.
Is there anything in your contract of sale or its riders that address the abatement? If not, the current owner of the co-op's stock is entitled to the reduction in maintenance provided by the abatement credit.
Here's what the NYC DOF has to say on the matter
https://www1.nyc.gov/site/finance/benefits/landlords-coop-condo.page#require
You're welcome, DM. Best of luck and I hope you get some answers.
--- Steve
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If you purchased on or before January 5, 2020
from an eligible shareholder/unit owner, you should receive the tax abatement for the July 1, 2020 through June 30, 2021 New York City (NYC) tax year. Therefore, if you purchased on or after January 5, 2020, then you will
first be eligible for abatement credits during the July 1, 2021 through June 30, 2022 fiscal year.
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