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Real Estate: Repeal of the Transfer Gains TaxKeywords: Transfer Gain Tax; Article 31B of the Tax Law; Cuomo Tax; 10% Gains Tax; Refunds Effective June 15, 1996, the transfer gains tax was repealed. The law was signed on July 13, 1996. Who is really affected? The primary parties affected are Coop and Condo Sponsors who paid this tax in installments. Why are they affected? Well, they have to file a "final computation" of tax due and pay the balance if any, or seek a refund. The final computation must be filed by May 31, 1997. It is based upon sales made after March 28, 1983 and prior to June 15, 1996. The forms for a final computation filing are DTF-1000, DTF-1001 & DTF 1004. We can help, if you need help. The NYS Dept of Taxation & Finance has a help line at (518) 457-1031. If you paid a tax on a transfer or sale that occurred on or after June 15, 1996, obtain Form TP165.8 to apply for the refund. The fact that the transfer gains tax was repealed does not relieve the taxpayer from taxes assessed or incurred prior to June 15, 1996. The final computation is based upon the actual sales made and actual expenses incurred for those sold units and the pro rate apportionment of indirect costs to the units actually sold as well as actual original purchase price directly attributable to those units. If an overpayment occurred then it will be refunded, No interest will be paid unless the overpayment is not refunded by August 29, 1997. If a underpayment is determined and it exceeds $10,000.00 it may be paid in 3 equal installments. One each on or before May 31, 1997, May 31, 1998 & May 31, 1999. The final computation must be filed before May 31, 1997 to take advantage of the installment payment election. The statute of limitations is 3 years from the filing of the final computation or May 31, 1997 which ever is later. The statute of limitations for refunds for overpayments is May 31, 1999 for transfers where final computation is required. All other refunds must be made within 2 years from the date of transfer. To order forms instructions or publications call (800) 462-8100 or (518) 438-1073. Fax back services telephone number is (800) 748-FORM (3676).
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