August 9th, 2022 Posted in Budget, Accounting

NYC UBT Tax Loophole

You Could Be Paying Less NYC UBT Tax or be Exempt

Are you paying NYC Unincorporated Business Tax? You might not have to, and your accountant might not know this.

UBT otherwise known as Unincorporated Business Tax is a tax that NYC collects at a rate of 4% on any unincorporated business. An unincororated business is any trade or business engaged in or conducted by a sole proprietorship or unincorporated business, including a partnership or LLC. If a business has multiple unincorporated businesses in NYC, they will be treated as one unincorporated business for the purposes of the tax. A unincorporated business can be treated as doing business in the city and subject to UBT by it that does business in NYC. Even if the business doesn't have an office or location in NYC, it only need carry on activities in the city with some regularity.

How is UBT calculated?

Calculating and reducing UBT owed is not always simple. Businesses subject to UBT may have multiple employees, some that worked from home and in the office. Determining the correct percentages of time working in NYC can be difficult. SRG Advisors can help your company in many ways when it comes to saving money on your UBT tax. It's important to work with an accountant that is very familiar with UBT.

Real Estate Salespeople Could be Exempt from UBT

For tax years beginning after January 1996, there are certain rules that would exempt individuals acting as real estate salespeople or associate brokers from paying the UBT. Individuals meeting these safe-harbor requirements are classified as employees, not independent contractors. This has large tax ramifications; you could have been saving that 4% that you have been paying on top of NYC regular income tax. Call us at 201-525-1222 to discuss and see if you are exempt from this deadly double taxation. We’ll review your return at no cost and either you can go teach your accountant something new, or you can hire SRG and we’ll help you get your rightfully earned refund now and in the future.

If you're a realtor doing business in any of the areas listed below and paying NYC UBT tax, please contact us today!

Sands Point NY • Scarsdale NY • Brookville NY • Woodsburgh NY • Plandome NY • Chappaqua NY • Lloyd Harbor NY • Mill Neck NY • Oyster Bay Cove NY • East Hills NY • Old Westbury NY • Larchmont NY • Muttontown NY • Pound Ridge NY

Schedule a call with us at 201-525-1222 or email us at

There are many significant and complex tax deductions and credits for businesses in all industries. However, many businesses and their accountants are unaware of these savings and the tax returns are never given appropriate attention or a second look. Contact SRG Advisors today to have a highly trained and dedicated member of our team review your returns!!!