Why Co-ops Almost Never Become Condos (NY)

/ Owner - August 9, 2018

Several times a month I’m approached by co-op boards who want to convert their cooperative corporation into a condominium association. A major reason is that condo apartments are now valued from 15 to 20 percent higher than co-ops. But I have bad news for these co-op boards. The Internal Revenue Code makes it virtually impossible to accomplish the conversion without paying taxes on the “phantom gain” in value.    Read the article………………

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