Discussion:NYC UBT-Unincorporated Business Tax
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Advanced Tax Questions --> NYC UBT-Unincorporated Business Tax
Discussion Forum Index --> Tax Questions --> NYC UBT-Unincorporated Business Tax
| 8 November 2007 | |
| Client has a 1065 LLC and is in the real estate business. Went into contract on a property and then flipped it 3 weeks later before closing to another party and made $250k.
1) Short Term Capital gain? (This way he does not have to pay FICA) 2) If this is a STCG is it subject to NYC UBT of 4% or not? Please let me know your thoughts! | |
| 8 November 2007 | |
| Since the client is in the business of buying and selling real estate it is ordinary income, not a capital gain. | |
Death&Taxes (talk|edits) said: | 8 November 2007 |
| My thought was getting a definition of 'real estate business.' Is it holding properties for rental and managing them? Or being a broker? People who own art galleries can run into this when they acquire paintings for their own wealth accession, as investments. | |
Death&Taxes (talk|edits) said: | 8 November 2007 |
| I missed one thing; if he bought the property in the name of the LLC it would be a partnership item on the K-1 so the art analogy does not fit. | |
| 8 November 2007 | |
| NYC UBT is required if the BUSINESS ACTIVITY IS CONDUCTED IN NYC - not necessarily where the client personally lives.
NYC-UBT is not incorporated on the NYS IT-201,3 forms. It's a tax that is paid directly to the NYC Department of Finance. | |
Death&Taxes (talk|edits) said: | 8 November 2007 |
| One thing is for sure if you have dealt with them: the position the NYC Dept of Finance is going to take! | |
To join in on this discussion, you must first
log in.
