A husband and wife each separately contracted to purchase stock in a cooperative housing corporation for two apartments that the seller had previously combined into one, each for a purchase price of less than the $1 million threshold for application of the New York “mansion tax” on residential real property. The total consideration for both apartments was $1.5 million. The Tax Appeals Tribunal, affirming an ALJ determination, held that the Department had properly aggregated the consideration for each transaction, and imposed the mansion tax on the total $1.5 million paid for both apartments.
The Tribunal concluded that the substance of the two purchases was the acquisition of a single combined apartment. Matter of Michael and Frances Sacks, DTA No. 822322 (N.Y.S. Tax Appeals Trib., Mar. 10, 2011).