The Wall Street Journal Features Warren Gleicher as Legal Source on Condo Buyers and the New Tax Law
The Wall Street Journal quoted Olshan Tax & Personal Planning partner Warren Gleicher on how the Tax Cuts and Jobs Act of 2017 (signed into law on December 22) has affected the condominium market in New York. Contracts for new condos and older co-ops and condos decreased in December (down 12% from December 2016) leading up to the finalization of the tax overhaul, after having increased for four consecutive months prior to its passage. The new tax law limits deductions for state and local taxes (including property taxes) to $10,000 and caps interest deductions to the first $750,000 of new mortgages. These limitations are most disadvantageous to taxpayers in states like New York, where state and local taxes (and the deductions from those taxes) are higher. “I’ve had clients call me,” Mr. Gleicher explained, “and they are very concerned about it in New York, especially the loss of property-tax deductions.” Now that hundreds of condo plans must be revised to reflect changes in the federal tax code, Mr. Gleicher affirmed that the changes have caused worry among condo developers, as most buyers of expensive apartments have a tax burden in excess of $10,000 in state and local taxes.