I can't help with the legal or tax stuff, but I know brownstones. What neighborhood is the building in? Upgraded in the 1980s is quite recent by brownstone standards. Try searching Trulia for "brownstone" in the neighborhood you're thinking of to get a sense of what prices are like.
Make sure you pick a street with mixed zoning where it's at all possible to run a store out of a residential building. In Brooklyn you're much more likely to see standard storefronts with apartments above; brownstone apartments are sometimes turned into doctor's offices (or, in some neighborhoods, tiny little churches), but I can't recall the last one I saw that was a retail establishment. It would be very difficult to keep such a space secure without a lot of renovation to separate it from the other floors, demolishing stairs and so on, and getting permits to run a store in a residential building can be an enormous hassle
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Okay, this is really helpful. The brownstone idea wasn't set in stone or anything, and I see now I need to change it; the standard storefront/apartment will be much less hassle to write about! For plot reasons, the store needs to be very secure.
The Truilia website's most helpful too. Definitely going to try that street view bit.
All I know is anything having to do with settling an estate is a nightmare and can takes years and years even if there is no antagonism between the heirs.
Somewhat more helpfully (I hope) I found this linked from the Wikipedia page on intestacy.
you'll have to look for NY's law, but as far as Federal goes "In 2010 and 2011 the federal estate tax exemption was $5,000,000, and it has increased to $5,120,000 in 2012, which means that if an estate is valued at $5,120,000 or less and death occurs in 2012, then the estate will not owe any federal estate taxes"
I'm told you still have to pay income tax on gains made that year after the transfer/verification of death, though- i.e., if they sell the building, capital gains tax will apply.
Phew, that's a relief. I had visions of having to burden my characters with a crippling debt, which would have dragged down the stories considerably. thanks!
Yay, someone else already gave you the estate tax exclusion! Your characters should be fine in that regard. The uncle should have had at least a little money as well (operating capital), and unless you want it otherwise, you can decide that it was enough to settle the outstanding liabilities of the estate (that is, whatever debts the uncle had when he died, including his funeral costs).
Re: capital gains tax on the sale of the building:
At death, the cost basis of inherited assets resets to the fair market value at the time of death. So, if a building sells for $2 million (random figure), and it was worth $1.9 million on the day the uncle died, the capital gains will be $100,000. That's not the amount of tax: that's the amount of money that will be taxed. Capital gains are taxed at a very low rate right now, much lower than income tax: the tax bite will be miniscule compared to the money they'll get from the sale. At 15%, each cousin would pay $7,500 to the IRS out of the $2 million gross proceeds
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Hmm... what if there was a detailed geneology chart lying around in the GU's papers? (he Had Reasons to want to know exactly how many blood relatives he had left) Could the cousins conceivably be notified and take possession of the property in, say, six months after the GU's death? (the third main character is an old business associate of the GU's, who comes by to see why he's six months late getting paid. I really don't think I could make him wait any longer than that.)
An entire brownstone would go for more than a million; check Corcoran Real Estate's website. Also google "Brooklyn real estate brokers brownstone" and you can get an overview of the prices. I'm a New Yorker, and I am staggered at the fact that a relatively small apartment can go for almost a million, depending on the location. It also depends where in Brooklyn. Williamsburg, Park Slope and that general area have a lot of brownstones with stores at the bottom. If the building is in East New York or Bedford-Stuyvesant, the building would still be valuable, but there would be no way there would be an antique store. Ergo, it's probably in a fairly affluent neighborhood. (Also the latter two areas are EXTREMELY dangerous.)
One note: even if they didn't have to pay estate taxes, they would probably have to pay state taxes on the property. You can probably fudge that, but we are a city with huge state and city taxes.
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Make sure you pick a street with mixed zoning where it's at all possible to run a store out of a residential building. In Brooklyn you're much more likely to see standard storefronts with apartments above; brownstone apartments are sometimes turned into doctor's offices (or, in some neighborhoods, tiny little churches), but I can't recall the last one I saw that was a retail establishment. It would be very difficult to keep such a space secure without a lot of renovation to separate it from the other floors, demolishing stairs and so on, and getting permits to run a store in a residential building can be an enormous hassle ( ... )
Reply
The Truilia website's most helpful too. Definitely going to try that street view bit.
Reply
Somewhat more helpfully (I hope) I found this linked from the Wikipedia page on intestacy.
Reply
Reply
I'm told you still have to pay income tax on gains made that year after the transfer/verification of death, though- i.e., if they sell the building, capital gains tax will apply.
Reply
Reply
Re: capital gains tax on the sale of the building:
At death, the cost basis of inherited assets resets to the fair market value at the time of death. So, if a building sells for $2 million (random figure), and it was worth $1.9 million on the day the uncle died, the capital gains will be $100,000. That's not the amount of tax: that's the amount of money that will be taxed. Capital gains are taxed at a very low rate right now, much lower than income tax: the tax bite will be miniscule compared to the money they'll get from the sale. At 15%, each cousin would pay $7,500 to the IRS out of the $2 million gross proceeds ( ... )
Reply
(the third main character is an old business associate of the GU's, who comes by to see why he's six months late getting paid. I really don't think I could make him wait any longer than that.)
Reply
One note: even if they didn't have to pay estate taxes, they would probably have to pay state taxes on the property. You can probably fudge that, but we are a city with huge state and city taxes.
Reply
Reply
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