Unincorporated Business Tax changes signed into law

Due in part to the efforts of the Real Estate Board of New York (REBNY), important changes to the Unincorporated Business Tax (UBT) have been signed into law. These changes will positively affect real estate salespersons and associate real estate brokers. The increase in the tax credit will reduce salespersons and broker taxes and in some cases eliminate a taxpayer's liability. Increasing the tax credit and raising the filing threshold will lower the number of individuals who will have to file a return, simplifying the UBT for many small businesses. Here are the key changes to the UBT that commence in 2009. Increase in offset credits A full credit is now available for liabilities of $3,400 or less, and a partial credit for liabilities between $3,400 and $5,400. The effect of the credit is that unincorporated businesses with incomes under $100,000 pay no tax, and unincorporated businesses with incomes under $150,000 pay a reduced tax. Filing Threshold Unincorporated businesses are only required to file a UBT return if their gross income is more than $95,000. "These legislative changes are an important step toward our goal of the elimination of this tax and a significant reduction in the cost of doing business in New York for our salespersons and associate broker members," said Steven Spinola, president of REBNY. He added, "We want to thank the mayor and the city council, the state legislature and the governor for enacting these changes that should encourage the creation of new businesses and new jobs in this difficult economic time." The Real Estate Board of New York is the city's leading real estate trade association with over 12,000 members. REBNY represents major commercial and residential property owners and builders, brokers and managers, banks, financial service companies, utilities, attorneys, architects, contractors and other individuals and institutions professionally interested in the City's real estate. REBNY is involved in crucial municipal matters including tax policy, city planning and zoning, rental conditions, land use policy, building codes and legislation. In addition, REBNY publishes reports providing indicators of market prices for both the residential and commercial sectors.