Flat-Fee Tax Preparation for New York Residents

New York City residents pay a separate NYC personal income tax on top of NY state tax, with rates from 3.078% to 3.876% — one of the highest combined state+city burdens in the US

The NY PTET (Pass-Through Entity Tax) election at 10.9% is one of the most valuable SALT workarounds available, generating a dollar-for-dollar credit against NY and NYC income tax

NYC imposes an Unincorporated Business Tax (UBT) at 4% on net income from self-employment and partnerships conducted in NYC — often missed by freelancers and consultants

Co-op and condo owners in NYC have unique tax issues: co-op shareholders can deduct their proportionate share of the building's mortgage interest and real estate taxes on Schedule A

NY's estate tax applies to estates over $7.16M (2024), with a 'cliff' provision where estates between 100%–105% of the exemption face a full phase-out of the exemption, creating an effective tax rate above 100% in the cliff range

The NYC Mansion Tax applies to residential purchases — 1% on sales $1M–$2M, scaling to 3.9% on sales over $25M, paid by the buyer

NY part-year residency rules are strictly enforced — NY uses a 183-day rule combined with a 'permanent place of abode' test, and has audited many high-income earners who claimed to have left NY

NY S-corporation recognition differs from federal — NY requires a separate election to be treated as an NY S-corp, and the state imposes a fixed-dollar minimum tax based on NY receipts ranging from $25 to $200,000

New York Real Estate Tax

New York's real estate market — especially New York City — generates some of the most complex tax situations in the country. Real estate professionals must track NY vs. NYC passive activity rules, and rental property owners in co-ops face unique deductibility questions. The NYC real property transfer tax (1%–2.625%) and state transfer tax (0.4%–0.65%) are major transactional costs that affect deal structuring.

New York Business Tax

New York businesses navigate both state and NYC-level business taxes. The NY General Corporation Tax and NYC corporate tax create a dual-filing obligation for city-based entities. The NY PTET election enacted in 2021 is now a cornerstone of tax planning for NY business owners with pass-through entities, and the interaction between the PTET credit and NYC UBT requires careful calculation to optimize the benefit.

Do I owe NYC tax if I live in New Jersey but work in New York City?

As a NJ resident who works in NYC, you owe NY state tax and NYC non-resident earnings tax on your NY-source wages. NJ will give you a credit for taxes paid to NY, but NJ's tax rates are often higher, so you may still owe NJ net tax. You do not owe the NYC resident tax (which is higher than the non-resident rate) unless you are domiciled in NYC. Many NJ residents working in NYC significantly overpay or underpay because this calculation is done incorrectly.

What is the NY PTET election and should my S-corp elect it?

The NY Pass-Through Entity Tax allows eligible S-corps and partnerships to elect to pay NY income tax at the entity level at rates up to 10.9%. The entity deducts this payment as a business expense on the federal return, bypassing the $10,000 SALT cap. Partners and shareholders receive a credit against their individual NY tax. For most NY business owners subject to the SALT cap, the PTET election generates significant federal tax savings and should be evaluated every year.

How does New York audit residency claims?

NY is one of the most aggressive states for residency audits, particularly targeting high-income earners who claim to have moved to Florida or another no-tax state. The audit examines your 'day count' (183-day rule) AND whether you maintained a permanent place of abode in NY. Evidence reviewed includes cell phone location data, credit card records, social media, gym membership usage, and where your primary doctor, dentist, and accountant are located. Changing domicile from NY requires meticulous documentation.

I own a co-op apartment in NYC — what are the tax implications?

As a co-op shareholder, you own shares in a corporation rather than real property directly. You can deduct your proportionate share of the building's mortgage interest and real estate taxes on Schedule A, subject to the usual limitations. When you sell, your gain is calculated based on your cost of the shares — not a traditional real estate cost basis. Co-op sales also involve the NYC mansion tax and transfer taxes if applicable.