The flip tax is a private building fee that directly reduces your net proceeds. Depending on your building's bylaws, it can be calculated as a flat percentage of the gross sale price (commonly 1-3%), a percentage of your net profit, or a fee per share. The range is typical, not a rule - it is set building by building. On a $2M sale with a 2% flip tax, that is $40,000 gone from your bottom line. Know your building's exact structure before pricing - it is a mandatory input in your net proceeds formula.
From the seller playbook: Flip Tax Structures in Co-ops
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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