A flip tax is a private building fee - not a government tax - paid to the co-op's reserve fund when you sell. It can be calculated as a flat percentage of the gross sale price (commonly 1-3%), a percentage of the seller's net profit, or a fee per share owned, depending on the building's bylaws. The exact figure is building-specific - confirm it rather than assuming the typical range applies. Identify your building's exact flip tax structure before pricing your listing, as it directly reduces your net proceeds.
From the seller playbook: Closing Cost Optimization: Transfer and Flip Taxes
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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