Hello! In this video we’ll show you how
our 421 G tax exemption and abatement projection model works. Everything in
blue are inputs and everything in black is a formula. Example, these are all for
us these are inputs primarily because these are actual historical figures that
are available in the property tax records. So let’s take a look at the
example mention in our article. Google, you can search for NYC property
tax lookup property tax bill online NYC we personally prefer the lookup gets
you to the same place. I’ll type in the address. And you’ll see that this is the account
history. Property tax is actually filled. This isn’t very useful as we discussed
these are the quarterly tax statements for this specific condo unit and notice
that because of New York’s fiscal year which overlaps two years you’ll see that
they’re grouped per fiscal year. So all of the abatement and exemption numbers
should be the same per fiscal year which makes it easy it means you don’t have to
look through four statements you can look at one instead you can also go to
this tab benefits – business and construction to see data
from the Department of Finance on the remaining abatement and here you’ll see
that this will be reflected in the current property tax bill and this is
what is proposed for the next period as it faces down this is a non landmark
building and this is as a result the benefit year is
and on a 14-4 the abatement so let’s show you what the base payment rate is
and all of this worked hi out to the property tax bills and to our model. So
if you take a look let’s go back to our model your this we should start with even
though this is the latest year we should start with the priors just so we can
model out how it looks as we start from the original top level exemption level
fifty nine thousand and thirty one and as it fully phases out so this way we
can see how it face is not fully and remember the abatement starts phasing
out approximately two years later so the with the 421g abatement it is a
steady level and then it phases out in the remaining four years so this is how
it looks and we can hide these numbers out on any property by simply looking at
the property tax bills So let’s take a look for example this is
the latest one and you’ll see actually that these
numbers will be the same for the for all four statements in the same fiscal year
right so this is nine one eight one the the abatement this is the abatement at
seven nine one six the and this is the reduction in the assessed value so this
is the assumption so if you just compare it to another quarter in the same fiscal
year you’ll see that it is the exact same number. So as discussed it changes
per fiscal year if you go down to the next fiscal year
you’ll see that again this is difference of the SS value was a bit higher the
prior year because it’s in the process of being phased out seven that one six
and so on if you go to this year prior you’ll see you get seven nine one six
cuz it hasn’t started phasing out for the abatement yet but this is the top
level of the original base level for the for the exemption about so if you just
go back in a few more years you’ll verify that in these two prior years
that indeed the exemption amount stays here so this is the original high
maximum exemption level and indeed it is the same for the prior year as well. 59 or 31 and you’ll see that this ties
out with our projection model so we start with the the year with the top
line and then as it starts facing on so this is the 59,031 that phases out and
this is the abatement level 7,916 it starts fading on 2 years later so for
the specific unit you can see that the property taxes are quite low right
before it phase outs begin but it picks up dramatically as both first the
exemption and then the abatement is completely phased out so we’re looking
at a difference from something like $3,000 in 2017 to a steady rate of over
$20,000 and remember this is for the sake of conservatism assuming that
assessed values do not increase in the future as you can see here that clearly
was not the case despite a soft property market in New York City and they should
why during this time period assessed values have actually increased so as a
property owner you’ll definitely want to engage a tax tertiary firm to dispute
your any increases in assessed values during the
during the 421 she tax incentive period many property owners forget to do this
as a building and as a result assessed values can get out of control and that
they are surprised when the when the abatement earnest and assessment is our
exemption it’s so please be careful and we hope you enjoy this model you can
download this using the link on this page the whole Excel model we hope
you’ve enjoyed it. If you did like this video please leave
a comment, subscribe to our channel or like it and that we very much appreciate
it and would would be happy to respond to any questions you might have.
Again just leave it leave a comment on youtube or whichever other channel
you’re watching and we hope to hear from you. Thank you so much!

Buying an Apartment with a 421G Tax Abatement (2020) | Hauseit®

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