New York City’s attempt to identify properties subject to its new pied-à-terre tax has triggered a lawsuit and temporary court block, with homeowners arguing that the city is incorrectly targeting properties held through trusts and limited liability companies.
The Wall Street Journal reported Monday that several homeowners who received tax notices share a common feature: Their homes are held through trusts. A trust or LLC is simply a legal structure that can hold a property instead of the individual owning it directly. The arrangement can be used for estate planning, inheritance or privacy, but it can also make it harder for the city to determine who actually lives in the property.
