Co-op Flip Tax Calculator

Sale Price

Flip Tax Percentage (%)

Cost Basis

Flip Tax per Share

Number of Shares

Flip Tax Type

Flip Tax
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Glossary

Flip Tax

A ‘Flip Tax’ is an informal term for an additional seller closing cost levied by some co-ops on sale transactions. Both the amount and formula for a Flip Tax vary by building, and it’s even possible for a condo to have a Flip Tax in NYC. A building may also amend, implement or remove a flip tax at any point by way of an owner vote. Seller closing costs in NYC are customarily higher for co-ops vs. condos because of the fact that most co-ops charge sellers a Flip Tax.

% of Sale Price

The ‘% of sale price’ format for a Flip Tax is calculated by multiplying the sale price by a predetermined percentage which varies by building. The typical range for a percentage of sale price co-op flip tax in NYC is 2% to 5%. That being said, some HDFC co-ops can have significantly higher Flip Taxes.

% of Profits

The ‘% of profits’ format for a Flip Tax is calculated by deducting the cost basis from the sale price and multiplying the result by a predetermined percentage which varies by building. Cost basis consists of the purchase price plus any qualifying capital improvements, closing costs or other factors deemed appropriate by the co-op board.

$ per Share

The ‘$ per share’ format for a Flip Tax is calculated by multiplying the number of shares assigned to an individual co-op apartment by a predetermined dollar amount per share. Since there is no relationship between the number of shares held by co-op apartments in different buildings, there is no average range for the ‘$ per share’ flip tax amount. That being said, most ‘$ per  share’ flip taxes amount to no more than a few percentage points of a sale price.

Number of Shares

Each individual co-op apartment is assigned a number of shares by the co-op corporation. Larger units as well as more desirable apartments (higher floor, better exposure, etc.) typically have a higher number of shares assigned to them. Operating costs and assessments for a co-op are proportionally allocated to units based on the share count. It’s important to note that while share count may be analyzed between units in the same co-op, there’s no way to draw any meaningful conclusions from the number of shares assigned to units in different co-op buildings.

Cost Basis

Cost basis consists of the purchase price plus any qualifying capital improvements, closing costs or other factors deemed appropriate by the co-op board. Cost basis usually comes into play when a Flip Tax is based on the size of a seller’s profit as opposed to the sale price itself.

Disclaimer: Hauseit’s Co-op Flip Tax Calculator provides estimates that are meant to be illustrative and used for reference purposes only. The exact flip tax varies by building. Please consult the closing statement your real estate attorney will provide you for your exact closing costs. Disclosure: Hauseit and its affiliates do not provide tax, legal, financial or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, financial or accounting advice. You should consult your own tax, legal, financial and accounting advisors before engaging in any transaction. The services marketed on Hauseit.com are provided by licensed real estate brokers and other third party professional service providers. Hauseit LLC is not a licensed real estate broker nor a member of any multiple listing service (MLS).
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