New York City – Real estate licensing business deemed to be a service provider, subject to Unincorproated Business Tax

June 2014


In a letter ruling, the New York City Department of Finance (Department) concluded that a company licensing office suites to third parties was not exempt from the Unincorporated Business Tax (UBT). The Department found that the company provided services that went beyond being incidental to exempt holding, leasing or managing real property. Accordingly, the company was subject to the UBT.   [Finance Letter Ruling, NYC Dep’t of Fin. FLR 13-4937/UBT, Aug. 19, 2013, released June 12, 2014]

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