NYC Pulls Back the Veil on Real Estate Transactions
Shell Companies
In this case, the shell companies are mainly Limited Liability Companies (LLCs) that have been set up in states that do not require the disclosure of the names of the members. The shell companies were then purchasing high-end apartments in NYC. Under previous NYC rules, the LLC only had to identify one member of the company when purchasing real estate, often a nominee. The new rules will attempt to remove the veil of secrecy and require the LLC to identify all members and provide their taxpayer identification numbers. With many high net worth individuals trying to avoid NYC residency, this could lead to potential problems for the owners of the LLCs. This new rule went into effect in May 2015 and should be a topic of discussion if you are considering purchasing NYC real estate.
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Josh Horowitz 212-751-9100 [email protected] |
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