New York State is now taxing the gain on the sale by a nonresident of co-op shares transferred in the sale of a co-operative apartment. Prior to this change, New York treated the sale of co-op shares as a sale of "intangibles" for which a nonresident of New York would not be subject to New York tax. Under the new law, a nonresident selling a co-operative apartment will have to include in taxable income the gain on the co-op shares. The estimated amount of the tax on the co-op share gain is due within 15 days of the closing. While the tax applies to any sale in 2004, the estimated tax payment requirement applies only to sales occurring on or after November 18, 2004.
