Bill

Bill > A08398


NY A08398

Requires certain joint tax returns pertaining to residential real estate cash purchases by limited liability companies to be accompanied by a document which identifies the source or sources of funds used for the purchase, including the type of funding used, the bank account information of any funds used in the purchase and the amount used by each source of funds.


summary

Introduced
05/13/2025
In Committee
05/13/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 General Assembly

Bill Summary

AN ACT to amend the tax law, in relation to requiring certain joint tax returns pertaining to residential real estate cash purchases by limited liability companies to disclose the source of funds used for the purchase

AI Summary

This bill amends the New York tax law to require that when a limited liability company (LLC) purchases residential real estate (such as a property with up to four dwelling units, including condominiums and cooperatives) without a mortgage, the joint tax return must include a detailed document disclosing the source of funds for the purchase. This document must specify the type of funding, provide bank account information, and indicate the amount contributed by each funding source. Additionally, if any funds originate from a foreign national (as defined by U.S. federal code), the document must include the foreign national's name, address, and information about any corporate entities they own. The new requirement aims to increase transparency in real estate transactions by LLCs, providing more detailed financial information about property purchases. The bill will take effect immediately but will apply to tax returns filed on or after January 1, 2026, giving parties time to prepare for the new documentation requirements.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

referred to ways and means (on 05/13/2025)

bill text


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