Saturday, May 12, 2007

TAX TRICKS: Developers Are Rushing To Beat the Tax Man - May 3, 2007 - The New York Sun 

Developers Are Rushing To Beat the Tax Man - May 3, 2007 - The New York Sun

Here is some interesting information about tax law and how it affects real estate development.

As debate rages in the state Legislature in Albany about a revised version of the popular tax abatement program, residential developers around the city are rushing to get their foundations in the ground before the current version of the program expires at the end of the year. Construction is now slated for more than 100 sites throughout the city for new residential condominiums. No matter what compromise is reached in Albany, developers agree that the new version of the program will not be as generous as the current one.

"The uncertainty of the 421-a legislation continues to drive construction and development, causing everyone to rush to get foundations in before the end of the year," the senior partner in the real estate department of Stroock & Stroock & Lavan, Ross Moskowitz, said. "Although not the intended objective, the loss of 421-a benefits in its present form, especially outside of Manhattan, will result in less projects being built and a corresponding reduction in the number of affordable units being constructed."

The 421-a tax incentive program was created in 1971 to spur housing development. Under the program, housing developers within designated areas are given tax incentives to develop housing. The program has helped fuel the construction of more than 110,000 apartments in New York City.

Edifying. There are so many moving parts and so many factors to consider when buying, selling and devloping property.


This page is powered by Blogger. Isn't yours?