Rich New Yorkers trying to dodge the new tax on second homes slam into a harsh reality
New York City's wealthiest homeowners are asking lawyers and tax advisors how to avoid Mamdani's pied-à-terre tax. They're not finding many loopholes.
New York City's wealthy homeowners are grappling with the city's new tax on second homes, dubbed the "pièce de résistance" tax. The tax applies to properties worth at least $5 million and will generate an estimated $500 million annually. Initially, anger over the chaotic rollout gave way to denial and bargaining, as residents sought loopholes.
However, the statute's tight restrictions have left many crestfallen. Attorneys and accountants report a surge of concerned calls from the affluent, who must now disclose their worldwide income and face hefty fines. Despite the tax's aggressive implementation, some residents still attempt creative workarounds, such as flying in for short periods to avoid the 184-day threshold.
The tax has sparked legal challenges, but the city remains firm, and attorneys advise clients to prepare for the tax's inevitable collection.
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