NYC’s pied-à-terre tax likely won’t be enough to get people moving. That won’t stop some towns from trying.

Nairavoice | 2h ago 180 0 3 min read
NYC’s pied-à-terre tax likely won’t be enough to get people moving. That won’t stop some towns from trying.

NYC’s pied-à-terre tax is proving to be a pain in the penthouse for the rich.

Death and taxes are the two guarantees in life, but the latter has been a bit more negotiable for the rich. (And they’re working on the former, too.) However, Mayor Zohran Mamdani’s tax on NYC’s second homes is proving difficult to sidestep.

BI’s James Rodriguez spoke with attorneys and accountants advising the uber-wealthy on how to navigate the pied-à-terre tax.

For many, it’s less about finding loopholes — hint: there aren’t many — and more playing therapist for people accustomed to getting around big tax bills.

In a city where rent keeps climbing, and affordability remains a top issue, people who can afford second homes aren’t necessarily getting much sympathy from fellow New Yorkers. (I don’t foresee a protest starting over Ken Griffin, who is worth roughly $48 billion, paying up to $1.4 million in additional taxes because of his three luxury apartments.

But, maybe I’m wrong!) One thing experts James spoke to seem certain about: No one is going anywhere due to the pied-à-terre tax.

For all the talk of NYC being “cooked,” insiders don’t see the uber-wealthy selling their second homes en masse.

That doesn’t mean places won’t try to pitch themselves as a pied-à-terre sanctuary.

One tri-state town appears to be making a pitch: Greenwich, Connecticut.

But before you claim a bias, understand my house isn’t the type of place the uber-rich would want as a second home. (Or third home, or fourth home, or fifth home.) However, there are places coming to market that would be a good fit for the pied-à-terre crowd.

The New York Post reported new luxury condos in downtown Greenwich were selling for up to $12 million.

According to the Post, that’s well above the town’s previous record for a condo sale ($6.75 million).

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The condos are being built by Caspi Development.

That might not mean anything to you, but a certain tax bracket will know them as the people behind Tribeca’s swanky Fouquet’s New York hotel.

The town has property taxes that are about 50% lower than those in bordering Westchester County.

Buyers also don’t have to worry about New York’s “mansion tax” applied to residential purchases of $1 million or higher.

If you’re looking to escape one tax, why not get relief from a few others while you’re at it?

There’s also a local airport bordering Greenwich that accommodates private jets and plenty of investment firms based in town and neighboring Stamford.

And for a class of people often obsessed with status and appearances, settling for anything less than the real thing (regardless of the cost) is unacceptable.

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Nairavoice

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