Q: Deed has 4 family members. One owner wants to be taken off deed, has never lived in NYS. The 3 other members pay taxes.
Remaining 4 members live in NYS. Fourth member never paid property or school taxes because she lives in MD. She's filing rp-5217 and tp-584 to have the deed changed to only 3 family members. She wants to be exempt from taxes. Everyone has 100% controling interest. Is that possible?
On tp-584, under "Condition of conveyance (check all that apply) a - s", which should be checked. Is Schedule B needed? Is so, under "Part I – Computation of tax due
1 Enter amount of consideration for the conveyance (if you are claiming a total exemption from tax, check the
exemption claimed box, enter consideration and proceed to Part III) .............................. Exemption claimed" what would the amount of consideration be?
A: There are two tax issues -- recording taxes and income taxes. If the deed is for no consideration, there are no recording taxes beyond the fee, and there are no income taxes. If there is consideration, there are ways to deal with this issue to simplify the deed but a lawyer would need to see the last deed and understand the transaction.
Barry E. Janay agrees with this answer
A: While some clarification and more information would be needed to properly address your question, I will point out that the people on the deed should have an impartial accountant look at who paid for all taxes, maintenance, and upkeep, and possibly the "sweat equity" for anyone who managed the property if for example it was a rental. Figure out the appropriate credits and deductions between the people on the deed and the person who wants off the deed should have his interest bought by the other members after subtracting the amount that he owes which should be paid by the other members pro rata to their credits and percentage of ownership, which should theoretically all go from 1/4 each to 1/3 each after the member is gone.
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