Back in September, Governor Cuomo signed into law a bill passed by the New York State legislature meant to make public knowledge the actual owners of one-to-four family homes purchased under the guise of LLC’s, limited liability corporations. The outcry from the condominium community – particularly in Manhattan – was swift and vehement. Added to recent 'mansion tax' hikes and the GOP-sponsored tax bill of 2018, “At the end of the day they are strangling New York real estate,” said Donna Olshan, luxury broker and owner of Olshan Realty Co., to the Wall Street Journal.
Now it appears that the supposed chokehold has been loosened. As of earlier this month, New York State Department of Taxation and Finance officials have “reconsidered” the legislation, and issued clarifications that may soothe those concerned about the ability of celebrities and other ultra-rich buyers to purchase luxury apartments more or less anonymously using LLCs.
What is an LLC?
According to Investopedia.com, “A limited liability company (LLC) is a corporate structure in the United States whereby the owners are not personally liable for the company's debts; limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship. While the limited liability feature is similar to that of a corporation, the availability of flow-through taxation to the members of an LLC is a feature of partnerships.”