HOW MUCH OF MY COOP MAINTENANCE IS TAX DEDUCTIBLE?

I still get this question on occasion from some real estate agents, and while I don’t want to sound sarcastic or condescending, I often answer with this: “I assume you mean how much of the maintenance is potentially tax deductible?” I go on to explain that I simply cannot answer that question specifically for their client because I don’t know anything about their tax landscape.

If the buyer is a New York City resident and works in the city, then it’s very likely that the taxes are not deductible at all — because the high income taxes in New York tend to eat up the entire $10,000 deduction currently allowable under the law.

Prior to 1986, virtually all taxes were deductible — real estate taxes, state and local income taxes, and even sales tax. In addition, all personal interest payments (including credit card and auto loan interest) were deductible. The 1986 Tax Reform Act eliminated all personal interest deductions except for home mortgage interest on loans up to $1 million and interest related to an additional $100,000 in home equity funds. Also retained in 1986 was the deductibility of state and local taxes (“SALT”), which includes both real estate and income taxes.

Then along came the 2017 Tax Cuts and Jobs Act (TCJA), which capped the mortgage interest deduction at $750,000 and limited the entire SALT deduction to $10,000 ($5,000 for married individuals filing separately) for tax years 2018 through 2025. Savings from the cap were used to permanently reduce the corporate tax rate and to enact a variety of temporary tax breaks for individuals and small businesses — which are set to expire at the end of this year unless the new bill proposed by the current administration passes.

The House passed a bill proposing to raise the SALT cap to $40,000 for joint filers earning up to $500,000, with provisions for annual increases over the next decade. This move aims to address concerns from lawmakers representing high-tax states like ours and California.

However, the Senate’s reception of this proposal is uncertain. Some senators argue that increasing the cap would disproportionately benefit wealthier individuals and exacerbate the federal deficit. The debate continues as lawmakers seek a compromise before the current provisions expire at the end of 2025.

Those who benefit from an increased SALT deduction live in higher-tax states like New York, California, and New Jersey, so senators from those states support it. Senators from lower-tax states see no benefit for their constituents. The debate over what’s “fair and equitable” continues — a difficult question under any income tax scheme.

Speaking of “fair and equitable,” something else to consider (or for the senators to consider) is exactly how much we New Yorkers contribute to the federal government’s coffers. New York generated approximately $320.1 billion in tax collections — 7.5% of all U.S. tax collections in 2023 — while representing just 5.8% of the nation’s population.

At $16,355 per capita, New York’s contribution to the federal treasury was 27.8% higher than the national average, and the state ranks highly in most tax categories.

Individual income taxes represent the largest portion of taxes paid. New York’s per capita individual income tax contribution was $8,745 — 35.9% higher than the national average of $6,433.

Because we pay so much into the federal government, an argument can be made (and has been made) that our contributions are being used to fund programs and projects in other states. The debate will continue at least for the next few weeks.

With respect to homeownership, I’ve been around long enough to remember the sage advice from everyone’s parents — including my own — that you must own a home because the tax benefits are too attractive to pass up. It was also part of the “American Dream.”

Tax laws have changed drastically — as outlined above — and will continue to do so if history is any indication. There will always be conjecture about the impact of these changes on residential real estate. Many in the real estate industry lamented that both the 1986 and 2017 tax acts would “kill real estate,” and that never happened.

It’s impossible to measure the exact effect of these changes on real estate markets — there are simply too many variables. But the fact remains: homeownership is still part of the American Dream, and the benefits beyond taxes are numerous — something I often espouse in this newsletter.

One thing I learned in my graduate tax law program that has stuck with me: never let the tax tail wag the dog. Taxes are simply one consideration — and often not the primary one — in any financial transaction.

Have a safe, relaxing, and enjoyable weekend!

Best, Michael

Question of the Day

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Local News

First look: The new Pedro Pascal-narrated space show in NYC

Journey through the galaxy while seeing a new scientific discovery.

Let internet boyfriend Pedro Pascal be your guide on a tour of the universe. The famous actor is the narrator for a new space show at the American Museum of Natural History's Hayden Planetarium titled Encounters in the Milky Way.

The show debuts on Monday, June 9, but we got a sneak peek today. Encounters in the Milky Way takes a 20-minute voyage through outer space with stunning visualizations of dazzling stars, constellations and planets. Stirring music complements Pascal's narration, and you'll even feel your seats move as if you could blast off to space yourself.

"On a clear night," Pascal says in opening the show, "a band of light stretches across the sky. The combined glow of billions of stars, partially obscured by great clouds of gas and dust: the majestic Milky Way. From Earth, it looks like we are at the center, and all these stars were all around us, but as astronomers learn to decipher celestial movement, we found our place in the cosmos."

Don’t miss the full feature—dive deeper into this stunning space experience. Please see the link below.

More Info: CLICK HERE

These Are NYC’s Top 100 Restaurants For 2025, According To The New York Times

"Where would we send our friends? Which places are worth a splurge? Worth an hourlong subway ride?" These are the questions NYT is answering.

We New Yorkers are certainly spoiled when it comes to dining out–from the tried and true spots New Yorkers say they’d eat at for the rest of their lives to the most beautiful restaurants perfect for a date night, it’s as if we have the entire world at our fingertips.

Though considering NYC is home to ~23,000 restaurants and it would take 22.7 years to eat our way through all of them, we’re not against allowing others to help us narrow down the best of the best. Thankfully, last year the New York Times–more specifically restaurant critic Pete Wells–put together a list of New York City’s top 100 restaurants for 2024, and this year the NYT built on that.

NYT interim restaurant critics Priya Krishna and Melissa Clark added about 100 additional spots to Wells’ list they they felt were worthy of consideration, and then over the past few months they “clocked dozens of hours on the subway and bought several new (larger) pairs of pants” to whittle the list back down to 100 restaurants that represent “the city’s culinary greatness, across boroughs, cuisines, price points and styles.”

Ready to eat your way through NYC? 🍽️ Check out the full list of 2025’s top 100 restaurants below!

More Info: CLICK HERE

39 Amazing Things To Do In NYC This

Weekend: June 6 – 8

Good news, New Yorkers: summer is almost here, and our list of things to do this weekend in NYC will help you make the most out of the extra daylight!

Searching for the best things to do this weekend in NYC? We have you covered.

Saturdays and Sundays are precious real estate, and you wouldn’t want to waste your time with subpar events. Fortunately for you, we found the most exciting activities the city has to offer, from pop-ups and shows to new bites and can’t-miss exhibits.

Start off with some brunch, peruse our recs, and then head out on your merry way. You won’t want to let a moment go to waste.

— With contributions from Justine Golata, Brianna Perry, and Corey Fuller

Make the most of your weekend! From pop-ups to performances, see what’s happening June 6–8 in the link below.

More Info: CLICK HERE

15 West 81st Street, Apt. 10B

3 Bed | 3.5 Bath | 7 Rooms | Co-op

Upper West Side | Maint.:$7,836/mo

Now offered at: $6,175,000

Experience the epitome of elegance and grand-scale pre-war living with this high-floor, seven-room residence at 15 West 81st Street, situated on one of Manhattan's most prestigious blocks. This home boasts sun-drenched views of the Museum of Natural History, the Rose Planetarium, and the expanse of Central Park, culminating in a breathtaking panorama of the Midtown skyline. A superb mix of modern renovations and meticulously restored features from the original design by Emery Roth creates the perfect harmony for this residence.

As you enter, a grand 24-foot gallery welcomes you, connecting the spacious living room to the expansive great room. The living room—a generous 17-by-27-foot space—offers an unmatched backdrop of the city's iconic landmarks. It provides abundant space for multiple furniture arrangements and features comfy window seats for a front-row view of the Thanksgiving Day Parade and balloon inflation night, as Thanksgiving Eve is known on this block. The living room is also adorned with a wall of high-end, custom-built cabinetry and storage.

The renovated open kitchen extends into what was once the formal dining room, creating the much sought-after open floor plan for modern and comfortable living. Measuring over 15 by 18 feet, the dining area is a haven for entertainers, complete with an oversized window that invites abundant natural light. Across from the picture window is a wall of handsome, solid wood built-in cabinetry and storage, along with a home office discreetly tucked away behind flush custom doors.

Culinary enthusiasts will delight in the expansive eat-in kitchen, which includes a sunny courtyard view, abundant floor-to-ceiling custom cabinetry, an expansive island with comfortable seating for casual meals and socializing, and a suite of high-end appliances—including a large side-by-side Sub-Zero refrigerator, a six-burner Viking range with a vented hood, a Bosch dishwasher, and a wine fridge. A conveniently located powder room, separate wine room, and laundry area complete this section of the residence.

The separate bedroom wing houses a palatial 14-by-24-foot primary suite with a dressing room lined with custom closets leading to a truly massive walk-in closet, and an en suite bath showcasing impeccably preserved Emery Roth tiling, a luxurious deep cast-iron soaking tub, and a separate shower stall. The suite shares the same awe-inspiring views of the Museum, Planetarium, and Central Park.

The generous second bedroom extends 20 feet toward the same lovely southern exposures and views, and features a perfectly restored Emery Roth bath and a massive walk-in closet. A tranquil third bedroom presents a peaceful courtyard view, ample closet space, and a personal en suite bath adorned with timeless tiling and fixtures.

The residence is replete with new windows, through-the-wall air conditioning, abundant closet space, and exquisite pre-war details such as original herringbone floors, solid wood doors, and classic moldings—all in impeccable condition.

Nestled within a prestigious white-glove cooperative known for its exceptional service, 15 West 81st Street is a stone's throw from Central Park West. Amenities include two full-time doormen, a resident manager, a professional staff of 20, a state-of-the-art fitness center, and additional conveniences. Owners also enjoy access to a bike room, playroom, and individual storage. The building permits 50% financing and requires a 2% flip tax paid by the purchaser.

See listing website: CLICK HERE

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More Listings

Michael J. Franco

Lic. Assoc. R.E. Broker

M: 917.817.4122

mfranco@compass.com

Office: 646-982-0353

Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. All Coming Soon listings in NYC are simultaneously syndicated to the REBNY RLS. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.