On December 29, 2022, the District of Columbia Court of Appeals held that transfer and recordation taxes were due on the portion of consideration from a sale of land and related improvements related to reversionary interests in land improvements. The taxpayers argued that the acquisition consisted of two distinct steps: (1) taxable land sales, via
transfer tax
California Court Rules That Sale of Existing Leasehold Interest Not Subject to Documentary Transfer Tax
Posted in California
A California Court of Appeal held that San Francisco may not impose a documentary transfer tax on the value of an existing 41-year leasehold interest upon the sale of the underlying property because the leasehold interest does not constitute “realty sold”. The taxpayer owned a commercial building and agreed to lease the ground floor to…
Watch Your Step: New York City Real Property Transfer Tax Imposed Under Step Transaction Doctrine
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Posted in New York, Noteworthy Cases
By Dmitrii Gabrielov and Tim Gustafson
The New York State Supreme Court, Appellate Division, affirmed the New York City Tax Appeals Tribunal’s (Tribunal) determination that certain real estate transactions were subject to the New York City Real Property Transfer Tax (RPTT) under the step transaction doctrine.
The taxpayer and a nonparty owned, respectively, 45% and…
Imposing Documentary Transfer Taxes in California after Ardmore
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Posted in California, Noteworthy Cases
Rarely does a subject as mundane as a documentary transfer tax become worthy of its own article. However, the June 29, 2017, decision of the California Supreme Court in 926 North Ardmore Avenue LLC v. County of Los Angeles is a worthy exception. Read this Law360 article by Eversheds Sutherland (US) attorneys Eric Coffill…