Thursday, January 03, 2008

Condo Tax Abatement

Here's the best news I've had in a while: it looks like the 421a tax abatement on my condo finally went through. It's a little early to tell what the actual effect of this will end up being, but the taxable value of my condo just decreased by 97%, so the savings should be significant! The abatement is effective for 12 years, I believe.
I also applied for my New York Middle Class Property Tax Rebate recently. I'm not sure if I'll turn out to be eligible for it due to the abatement. The rebate is usually a flat $400 for most homeowners, but since my annual taxes may end up being less than that, I'd be surprised if they give me anything in the future. But for 2007, I paid way more than $400 in taxes since the abatement hadn't kicked in. Will the abatement be retroactive? I have no idea. This whole issue is one that seems hard to find answers to-- just try calling that phone number they give you for questions about the STAR rebate, I'm sure you'll never get a live person!
Anyway, I'm just going to muddle along for a while and see how it shakes out. Hopefully when my lower tax bills start coming through I can get my mortgage bank to escrow less money, and my cash flow will be a couple hundred dollars better each month!

9 comments:

RacerX said...

That's great news. I know you have been waiting to hear, but this should be a real positive impact for you!

SandyVoice said...

Great new on the tax abatement!

I got a STAR rebate last year, and they just sent a check. Since I didn't pay much tax the year before, I didn't get the full $400 -- the amount you get is dependent on the amount you pay.

teresa said...

My husband and I are waiting for our next tax bill that shows the new abated rate, and we're supposed to get back the money the banks been holding in escrow for the unabated rate. I would contact the attorney you used when you bought the apt because I think it might be retroactive.

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New Yorker in Oz said...

I'm new to your blog. A former New Yorker (born in Brooklyn, native until 1995), I now live in Sydney, Australia, where the cost of living and housing is similar to living in Manhattan. I thought I'd add the perspective of what happened to my income now that I'm retired at age 70.Because of an agreement made between Australia and the U.S., I have no choice but to receive U.S. Social Security (as opposed to the Australian 'age pension' - quaint name, eh?). So I live on Social Security, currently $1551/month,(US Dollars); IRA distributions of approximately $900/month(US Dollars); and a pension from my former US employer, a fortune 500 company, of $838 post-tax (US dollars). All this gives me an income of approx $40,000 (US Dollars) per year. I pay $1540 a month in rent, pay taxes in both countries, and can't afford to own a car. Car registration is up to $1000/year (Australian dollars) and gas (petrol) is $1.50 per litre - approx $6.00/gallon (US dollars). All I can say is, however much you think you will need to live in retirement, budget for more....much, much more.

Chicago Rob said...

I am confused...from your blog, I assumed you lived in a fairly gentrified area of Bklyn, like Park Slope. If so, they give 12 yr tax abatements for this? Surprising...I thought tax abatements were for less than desirable areas they want to build up.

You're lucky - my condo in Chicago is worth about 2-225K and my taxes are abt 3K/yr.

Happy 2008!

Madame X said...

Rob, I used to live in Park Slope but am now in an area that is much less gentrified.

Jessica said...

Hi,

It's great to know that you'd get a low tax bill this year. By the way, there are several deductions/credits that might help you save more in taxes. All that you need to do is follow some smart tax planning tips available at http://www.mortgagefit.com/tax/34tips-deduction.html and http://www.associatedcontent.com/article/235/5_tax_deductions_youve_never_thought.html

Regards,

Jessica

Anonymous said...

hi madame x. interesting blog, with good inside information.

I am another Brooklyn woman whose building recently got approved for the 421a abatement. I'm wondering if I will be eligible to get the STAR credit in addition to that. Did you get to the bottom of this? Thanks for filling me in.