Bill > S05716

This bill requires joint tax returns for residential real estate cash purchases by limited liability companies (LLCs) to include a detailed document disclosing the source of funds used in the purchase. Specifically, the document must identify the type of funding, bank account information, and the amount contributed by each funding source. If any funds originate from a foreign national (as defined by U.S. federal law), the document must also include the foreign national's name, address, and information about any corporate entities they own. The bill applies to residential properties with up to four dwelling units, including condominiums and cooperatives, where the purchase is not secured by a mortgage. The tax return cannot be accepted for filing without this accompanying document, and the return must be filed with the recording officer before the property deed can be recorded. The bill will take effect immediately but will apply to returns filed on or after January 1, 2026, giving entities time to prepare for the new documentation requirements.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S5716