Requires certain joint tax returns pertaining to residential real estate cash purchases by limited liability companies to be accompanied by a document which identifies the source or sources of funds used for the purchase, including the type of funding used, the bank account information of any funds used in the purchase and the amount used by each source of funds.
Summary
Bill S05716 amends the New York tax law to require that certain joint tax returns for residential real estate cash purchases by limited liability companies (LLCs) include detailed documentation of the sources of funds used for the purchase. Specifically, when an LLC is the grantor or grantee of a deed for residential properties containing up to four dwelling units, the joint return must be accompanied by a document identifying the source of funds, including bank account information and amounts used from each source. If any funds originate from a foreign national, the document must also include the foreign national's name, address, and any corporate entity they own.
Impact
This bill will impact state laws by increasing transparency in real estate transactions involving LLCs, particularly in cash purchases, which have been scrutinized for potential money laundering and tax evasion. By requiring detailed disclosures, the state aims to ensure that all financial transactions are legitimate and traceable, thereby enhancing regulatory oversight of real estate purchases. The bill will apply to returns filed on or after January 1, 2026, thereby establishing a new compliance requirement for LLCs involved in such transactions.
Sentiment
The general sentiment around Bill S05716 appears to be supportive among legislators who prioritize transparency and accountability in real estate transactions. However, there may be concerns from some stakeholders regarding the administrative burden this bill could impose on LLCs and the potential impact on foreign investment in New York's real estate market.
Contention
Notable points of contention include the potential impact on foreign investment, as some argue that the requirement to disclose foreign sources of funds could deter foreign buyers from participating in the New York real estate market. Additionally, there may be concerns from LLCs about the complexity and privacy implications of disclosing detailed financial information. Advocates for the bill emphasize the need for transparency to combat illicit financial activities.
Same As
Requires certain joint tax returns pertaining to residential real estate cash purchases by limited liability companies to be accompanied by a document which identifies the source or sources of funds used for the purchase, including the type of funding used, the bank account information of any funds used in the purchase and the amount used by each source of funds.
Requires certain joint tax returns pertaining to residential real estate cash purchases by limited liability companies to be accompanied by a document which identifies the source or sources of funds used for the purchase, including the type of funding used, the bank account information of any funds used in the purchase and the amount used by each source of funds.
Takes several measures to lead by example by banning state purchases of plastic bottles, and requires state funds to be used to lease or purchase electric vehicles and renewable energy efficient technologies for use on state property.
Takes several measures to lead by example by banning state purchases of plastic bottles, and requires state funds to be used to lease or purchase electric vehicles and renewable energy efficient technologies for use on state property.
Takes several measures to lead by example by banning state purchases of plastic bottles, and requires state funds to be used to lease or purchase electric vehicles and renewable energy efficient technologies for use on state property.
Provides that sales and compensating use taxes on a new mobile home purchased as a primary residence shall be computed on thirty-five percent of the receipts or consideration given therefor by the purchaser or user.