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Real Estate Taxation
Practice areas

Real Estate Taxation

Real Estate Tax Projections

DL Partners analyzes and prepares future projections of real estate taxes for either a new or existing property, whether it is a rental, condominium or cooperative building. The analysis considers the value of any real estate tax benefits. The firm has a detailed understanding of how the assessed value and ultimate real estate taxes are determined by the New York City Department of Finance.

Real Estate Tax Opinion Letters

DL Partners prepares projections and Opinion Letters for future real estate tax expenses for developers, borrowers and lending institutions. Often these Opinion Letters are used in new Condominium and Cooperative Offering Plans. Projection Letters are also often combined with an explanation of anticipated real estate tax benefits such as a 421-a exemption or an ICAP abatement. Lenders often require opinion letters in their analysis to determine the value of a tax abatement or tax exemption benefit.

Tax Exemption & Tax Abatements (ICAP, 421-a, J-51)

DL Partners represents owners who construct new buildings or make alterations to existing buildings within the City of New York in filing for a tax abatement under the Industrial Commercial Abatement Program (ICAP). The ICAP tax abatement may provide a substantial real estate tax savings where a nonresidential building is altered or constructed in certain areas of New York City.

We counsel developers of new residential construction of multiple dwellings that are eligible for a tax exemption under the 421-a program. Depending on the eligibility criteria, a 421-a real estate tax exemption may provide exemption benefits for a period of thirty-five years. In most circumstances, up to three additional years of tax benefits may be obtained during the construction period.

The firm offers assistance in maximizing the value of an existing property through both the J-51 real estate tax abatement and exemption program and by obtaining approval of a Major Capital Improvement Rent Increase (MCI) from the NYS Division of Housing and Community Renewal. These benefits in certain circumstances may run for as long as 34 years.

Not-for-profit Real Estate Tax Exemptions (420-a)

DL Partners represents not-for-profit organizations in applications for not-for-profit real estate tax exemptions. This exemption benefit may grant a full or partial real estate tax exemption to the property owned by the not-for-profit organization. These applicants include hospitals, educational institutions, houses of worship, religious organizations, parsonages, historical societies, libraries, cemeteries, and other not-for-profit organizations that own property and use it for exempt purposes. We also represent landlords and tenants in establishing and structuring leasehold condominiums and applying for the not-for-profit real estate tax exemption.

‚ÄčThe firm also counsels and helps eligible not-for-profit organizations apply for contemplated use exemptions where the property of the not-for-profit organization is either vacant or undergoing construction.

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