Bill > A08398

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.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A8398