Risks Ignoring Sales Tax in a Real Estate Transaction
The professionals in the EisnerAmper Real Estate Group recently wrote in their Real Estate blog about the risk of ignoring sales tax in a real estate transaction as demonstrated in the decision made by the New York State Division of Tax Appeals (Division) in the Matter of the Petition of Empire Holdings LLC. To expand on this matter from a state and local tax perspective, the Division is at liberty to assess either the seller or the buyer of the tangible property. The State chose to assess the unbilled tax against the seller. In retrospect, the Empire Hotel, as a registered vendor, may well have considered -- in connection with this sizeable $78.3 million sale of the hotel – collecting the relatively insignificant additional sales tax of approximately $87,000 from the buyer.