Yesterday, The Council of the City of New York approved a local law amendment increasing the audit requirement threshold from $1 million of assessed value to $5 million of assessed value for the Income and Expense Schedule for Rent-Producing Property (Form TC-201) by a certified public accountant.
Effective January 1, 2019 and impacting the 2019/20 tax year (2018 reporting year), the requirement threshold for the filing of an Accountant’s Certification (Form TC 309) has increased. The initial $1 million threshold, which was set in 1973, has been increased to $5 million to compensate for the tremendous shift in New York City property values since the initial law was put in place. This increase will benefit many small property owners and reduce the time and effort put into complying with the TC 201 audit requirements.
To keep pace with the ever changing property values of the city, the approved law has also accounted for future adjustments to the threshold. In the adjustment years, which will be every five (5) years beginning July 1, 2024 (the first adjustment year), the Tax Commission will calculate the assessed value threshold and any increase or decrease, will apply beginning with the fiscal year immediately following the adjustment year.
If you have any questions, contact your Berdon advisor.