Today, New York State Department of Taxation and Finance quietly changed the disclosure requirement for condominium purchases. A link to The Real Deal article with more color on this change can be found here: https://therealdeal.com/2019/11/07/state-quietly-removes-mention-of-condos-in-llc-law/
As previously noted in our blog, the interpretation of Senate Bill S1730 led to some tumult among a certain segment of purchasers of New York City condominium units since the use of an LLC to purchase a condominium unit is a popular way to mask one’s identity. From a legal standpoint, it is also a great way to shield the owner from liability if the property will be used as a rental unit. The use of an LLC to purchase a condominium unit is quite popular. According to 6sqft, approximately 30% of condominium units built after 2008 are owned by LLCs.
Today the State Department of Taxation and Finance removed the words “or residential condominium” from its guidance which means that there is no longer the requirement to disclose the principal behind the LLC.