Property intelligence report

988 Fifth Avenue, New York, NY 10075

A pre-war co-operative apartment at 988 Fifth Avenue asking $9,500,000, analysed for a Swedish tax-resident individual buyer intending personal use with 50% financing. The purchase is workable, but two structural features of the transaction — co-operative board control and the buyer's nonresident status — carry more weight than the price itself. Buyer-side closing taxes alone come to $0 before legal and title costs, and the listing does not disclose the building's underlying mortgage, assessment history or financing policy.

This is a public sample. The property facts illustrate a publicly marketed apartment; every figure is computed by the same deterministic engine and versioned rules used in paid reports.

Analyse your listing

Decision posture

Proceed with conditions

The disclosed facts support proceeding to an offer, conditional on three verifications: the co-operative's written policy on foreign, nonresident and entity purchasers; the building's financial statements including the underlying mortgage and any current assessment; and confirmation from a U.S. tax adviser of the estate-tax exposure created by holding a U.S. situs asset directly. Any one of these can change the economics or make the purchase impossible, and none of them can be resolved from the listing.

Asking price: $9,500,000
Property type: Co-operative apartment
Monthly common charges: $12,860
Listed annual tax: Not disclosed

Key findings

Verified facthigh confidence

Co-operative ownership, not a condominium

The purchase conveys shares in a corporation and a proprietary lease, not a deed. Most Fifth Avenue co-operatives restrict or refuse nonresident foreign purchasers, restrict entity ownership, require substantial post-closing liquidity, and cap financing. The board's policy governs whether this transaction is possible at all.

Calculationhigh confidence

Buyer-side transfer taxation of $0 on the mansion tax alone

At $9,500,000 the New York State supplemental tax falls in the 0.00% band and applies to the whole consideration, not the excess over the threshold. It is payable by the buyer at closing and is not financeable.

analytical_observationmedium confidence

Mortgage recording tax does not apply to a co-operative loan

A loan secured by co-operative shares is not a recorded mortgage on real property, so New York City mortgage recording tax is generally not charged. The figure shown in the calculations is the amount that would arise on an equivalent condominium purchase, kept for comparison.

Verified facthigh confidence

Maintenance is the dominant carrying cost

Monthly maintenance of $12,860 is $154,320 a year. A portion is deductible real-estate tax and underlying-mortgage interest, but the listing does not disclose the split, so no deduction has been assumed.

Verifymedium confidence

Direct ownership creates U.S. estate exposure from the first dollar above $60,000

A nonresident alien holding U.S. situs real property has a $60,000 estate-tax exemption absent treaty relief. The U.S.–Sweden estate tax treaty was terminated with effect from 2008, so no treaty exemption is available on these facts and the full value is exposed at rates rising to 40%.

Estimatelow confidence

Square footage is advertised, not certified

The 4,000 sq ft figure is the marketing figure. Co-operative offering plans state room counts, not measured interior area, and no floor plan measurement has been verified. Price per square foot is therefore an indicative figure only.

Actions before signing

01Request the co-operative's written purchase requirements: permitted financing percentage, post-closing liquidity requirement, policy on nonresident and foreign purchasers, and whether trust or entity ownership is accepted.
02Obtain two years of audited financial statements and the current underlying mortgage balance, rate and maturity date for the corporation.
03Ask whether any assessment is in force or planned, and for the minutes of the last twelve board meetings.
04Confirm the maintenance deduction split (real-estate tax and underlying-mortgage interest) in writing from the managing agent.
05Instruct a U.S. attorney to review the proprietary lease, house rules and offering plan amendments before signing the contract.
06Have a U.S. tax adviser confirm the estate-tax position and, if relevant, evaluate whether alternative structures are permitted by this building.
07Confirm with a Swedish adviser how the U.S. property and any U.S. tax paid interact with Swedish taxation of the household.

Verified facts

Address	988 Fifth Avenue, New York, NY 10075	Listing page
Asking price	$9,500,000	Listing page
Ownership form	Co-operative apartment	Listing page
Monthly maintenance	$12,860	Listing page
Advertised interior area	4,000 sq ft (advertised, not certified)	Listing page
Bedrooms / bathrooms	4 / 4.5	Listing page
Year built	1926	Listing page
Listed annual property tax	Not disclosed — included within maintenance	Listing page
New York State mansion tax band	0.00% of consideration	New York State Department of Taxation and Finance
FIRPTA withholding rate on a future sale	15% of gross sale price	Internal Revenue Service

Conflicting facts

Conflictmedium confidence

Listing claim: 4,000 sq ft
Record value: No measured area of record for co-operative units
Difference: Unquantifiable

Price per square foot, and any comparison with condominium comparables quoted per square foot, rests on a marketing figure that no public record confirms.

How to verify: Commission an independent floor-plan measurement, or compare against the offering-plan room schedule.

Calculations

Every figure below is computed in code from versioned jurisdiction rules or from stated assumption bands. The formula, the inputs and the rule version are shown so each number can be checked independently.

acquisition

Item	Low	Mid	High	Basis
Title insurance, legal and closing service costsEstimatemedium confidence	$38,000	$66,500	$104,500	0.40%–1.10% × purchase price Market range for buyer-side title insurance, title search, recording and attorney fees. This is an estimate band, not a quotation.
Lender origination and mortgage processing costsEstimatelow confidence	$23,750	$47,500	$71,250	1.00% × mortgage amount Typical origination point plus processing. Actual lender pricing varies materially.

Item

Low

Mid

High

Basis

Title insurance, legal and closing service costsEstimatemedium confidence

$38,000

$66,500

$104,500

0.40%–1.10% × purchase price

Market range for buyer-side title insurance, title search, recording and attorney fees. This is an estimate band, not a quotation.

Lender origination and mortgage processing costsEstimatelow confidence

$23,750

$47,500

$71,250

1.00% × mortgage amount

Typical origination point plus processing. Actual lender pricing varies materially.

valuation

Item	Low	Mid	High	Basis
Price per advertised combined square footEstimatemedium confidence	$2,375	$2,375	$2,375	purchase price ÷ advertised combined interior and exterior area Advertised area may combine interior and exterior space. It is shown separately and never treated as interior area.

Item

Low

Mid

High

Basis

Price per advertised combined square footEstimatemedium confidence

$2,375

purchase price ÷ advertised combined interior and exterior area

Advertised area may combine interior and exterior space. It is shown separately and never treated as interior area.

carry

Item	Low	Mid	High	Basis
HOA or common charges (annual)Estimatemedium confidence	$154,320	$154,320	$154,320	monthly common charge × 12 Excludes special assessments, which are disclosed separately in building financials.
Insurance estimate (annual)Estimatelow confidence	$2,375	$4,275	$7,600	$0.25–$0.8 per $1,000 of value Unit or homeowner policy estimate. Flood, wind and high-value contents cover are not included and can change this materially.
Maintenance and reserve allowance (annual)Estimatelow confidence	$28,500	$57,000	$95,000	0.30%–1.00% × value Owner-side allowance for interior upkeep and reserves, separate from building common charges.
Financing cost (first-year interest estimate)Estimatelow confidence	$261,250	$308,750	$356,250	5.5%–7.5% × mortgage amount Interest only, first year, before amortisation. Foreign-national lending is typically priced above domestic rates.

Cross-border position

U.S. federal income tax on rental income

Verify

Intended use is personal, so no rental income is assumed. If the apartment were ever let, a nonresident alien may elect to be taxed on a net basis under a section 871(d) election; without it, gross rents face 30% withholding. Most Fifth Avenue co-operatives prohibit or heavily restrict subletting in any case.

U.S. federal estate tax

Verify

Direct ownership by a nonresident alien exposes the full U.S. situs value above a $60,000 exemption to estate tax at rates reaching 40%. The U.S.–Sweden estate and gift tax treaty was terminated effective 1 January 2008, so no treaty exemption applies. This is the single largest unpriced exposure in the transaction.

Swedish treatment of the holding

Verify

Sweden is covered at general-analysis level in this report. How the apartment, any U.S. tax paid and any deemed benefit of personal use are treated for Swedish purposes must be confirmed with a Swedish tax adviser. No Swedish rates are stated here.

Exit withholding

Verify

On a future sale, FIRPTA withholding of $0 would apply at today's price against the gross proceeds, recoverable through a U.S. return or reduced in advance by a withholding certificate. It is a cash-flow event, not a final tax.

Reporting obligations

Verify

Holding U.S. real property personally does not itself create a U.S. filing obligation until income arises or the property is sold. If an entity is used, additional U.S. filings apply and most co-operatives will not permit the structure. Not verified for this building.

Ownership structures

Structure	Liability	Privacy	U.S. income tax	State tax	Estate exposure	Home-country treatment	Personal use	Administration	Exit complexity
Direct personal ownership (shares in own name)	Personal, uninsulated	Name appears in the co-operative's records; no public deed	Nonresident rates on any U.S. income; none assumed here	New York nonresident filing only if U.S. income arises	Full value above $60,000 exposed; no U.S.–Sweden estate treaty	Confirm with a Swedish adviser	Unrestricted, subject to house rules	Lowest	Lowest; FIRPTA withholding applies
Revocable trust	Personal, uninsulated	Similar to personal ownership	Treated as owned by the grantor	As personal ownership	No reduction; still U.S. situs property	Swedish recognition of trusts is uncertain — advice required	Unrestricted if the board permits the structure	Moderate	Moderate
U.S. LLC	Limited, subject to formalities	Higher, but beneficial-ownership reporting applies	Flow-through by default	New York filing obligations arise	Not reliably reduced for a single-member LLC	Risk of mismatch — Swedish advice required	Use of company property may be a taxable benefit	Higher; annual filings	Higher
Foreign corporation over a U.S. entity	Limited	Highest	Corporate rates; branch profits tax may apply	New York corporate filings	Shares of a foreign corporation are generally not U.S. situs	CFC-type rules may apply — Swedish advice required	Benefit-in-kind exposure in both countries	Highest	Highest

Financing, estate and use

Financing considerations

01The analysis assumes 50% financing. Many Fifth Avenue co-operatives cap financing at 50% and several permit none; confirm the ceiling before making an offer.
02A co-operative loan is secured by shares, not by real property, so New York City mortgage recording tax is generally not payable. The comparison figure in the calculations shows what a condominium purchase of the same size would cost.
03Boards commonly require post-closing liquidity of one to two years of maintenance plus debt service, held in accountable, verifiable form.
04Lending to a nonresident alien on co-operative shares is a narrow market; expect a limited lender panel, higher pricing and substantial documentation of foreign income.
05Interest deductibility for a nonresident with no U.S. taxable income is generally unavailable — the mortgage should be assessed on cash-flow grounds alone.

Estate and succession

01The property is U.S. situs from the moment of closing; there is no phase-in and no minimum holding period.
02The $60,000 nonresident exemption is not indexed and has not changed since 1988.
03The U.S.–Sweden estate and gift tax treaty was terminated with effect from 1 January 2008; do not assume treaty relief.
04Term life insurance sized to the projected estate liability is the most common practical mitigation and should be priced before contract.
05A U.S. will covering only the U.S. asset simplifies probate; confirm it does not disturb Swedish succession planning.

Rental and personal use

01Intended use is personal. Most Fifth Avenue co-operatives prohibit subletting entirely or permit it only after several years of residence and with board approval each time.
02Short-term letting is prohibited by New York City law for stays under 30 days where the owner is not present.
03Assume the apartment produces no income for the duration of ownership, and treat any future letting as requiring fresh advice.

Exit considerations

01FIRPTA withholding of $0 would apply at today's price and is withheld from gross proceeds at closing.
02A withholding certificate applied for in advance can reduce the amount withheld to the expected tax; it takes around 90 days.
03New York City real property transfer tax is customarily paid by the seller and is shown in the calculations for planning purposes.
04Co-operative resale requires board approval of the incoming purchaser, which lengthens and adds risk to any exit.
05Flip taxes are common in pre-war co-operatives; this building's flip tax, if any, is not disclosed and must be confirmed.

Risk findings

Riskhigh severity

Board rejection risk

A co-operative board may decline any purchaser without stating a reason. For a nonresident foreign buyer this is the principal transaction risk and it is not mitigable by price.

Riskhigh severity

Unquantified estate exposure

Direct ownership exposes the full value to U.S. estate tax with no treaty relief. Until an adviser prices this and any insurance solution, the true cost of ownership is understated.

Riskmedium severity

Undisclosed building finances

The underlying mortgage, reserve level and assessment history are not disclosed. In a 1926 building, capital works can add materially to the monthly figure without notice.

Risklow severity

Area figure unverified

Price per square foot rests on an advertised number, weakening any comparable-based negotiation argument.

Negotiation position

Opening offer range

$8,550,000 – $8,835,000

Target range

$8,930,000 – $9,120,000

Evidence

01Buyer-side closing taxation is unfinanceable cash and should be reflected in the opening number.
02The absence of a disclosed underlying mortgage position and assessment history justifies a discount held back until the financials are produced.
03Advertised area is uncertified, so per-square-foot comparisons favour a conservative opening.
04Board approval risk for a nonresident purchaser is real and one-sided; sellers price for certainty.

Walk-away conditions

01The board's written policy excludes nonresident foreign purchasers.
02Audited financial statements show an assessment or capital programme not reflected in the maintenance figure.
03Financing is capped below the level the purchase requires.
04The estate exposure, once priced, cannot be insured or structured on acceptable terms.

Questions for your advisers

Broker

01What is the board's written policy on nonresident foreign purchasers, and when did it last approve one?
02What is the maximum permitted financing, and what post-closing liquidity does the board require?
03Is there a flip tax, and how is it calculated?
04What is the current underlying mortgage balance and when does it mature?
05Has the building carried out or scheduled façade, elevator or mechanical work?
06How long has the apartment been on the market and has the price moved?

Attorney

01Does the proprietary lease restrict ownership by a nonresident, a trust or an entity?
02What does the offering plan say about the apartment's room schedule and any subsequent alterations?
03Are there unresolved building-wide litigation or violation matters?
04What contract protections are available if board approval is withheld?
05How should the U.S. asset be dealt with in a will alongside Swedish succession planning?

Tax adviser

01What is the projected U.S. estate liability on these facts, and what does insuring it cost?
02Is any ownership structure both permitted by this building and effective for estate purposes?
03What U.S. filings arise while the apartment is held for personal use only?
04How would a future FIRPTA withholding certificate application be handled and timed?
05How is the U.S. holding, and any U.S. tax paid, treated in Sweden?

Verification checklist

Board purchase requirements in writing	Determines whether the transaction is possible at all.
Audited financial statements, two years	Reveals reserves, arrears and the underlying mortgage.
Underlying mortgage terms	A refinancing at maturity can move maintenance sharply.
Assessment history and plans	Pre-war buildings carry recurring capital programmes.
Maintenance deduction split	Determines the after-tax carrying cost.
Flip tax	Directly reduces net proceeds on exit.
Independent area measurement	Validates or refutes the price-per-square-foot argument.
U.S. estate exposure priced by an adviser	The largest unquantified cost in the transaction.
Swedish treatment confirmed locally	Coverage for Sweden is general-analysis level only.

Documents not yet available

01Two years of audited co-operative financial statements
02Current underlying mortgage terms and balance
03Board minutes for the last twelve months
04Offering plan and all amendments
05Written purchase requirements and financing policy
06Managing agent's statement of the maintenance deduction split
07Any current or planned assessment schedule

Limitations and provenance

01This is a public sample. The property facts are those of a publicly marketed apartment and are used for illustration.
02Every monetary figure is computed from the versioned rules cited beside it; none is an appraisal or a valuation.
03No building financial statements, board minutes or offering plan were available to this analysis.
04Coverage for Sweden is general-analysis level: no Swedish rates are stated and local advice is required.
05Negotiation ranges are analytical estimates from disclosed evidence, not an opinion of market value.
06This report is analysis, not legal, tax or investment advice.

Generated: Thu, 03 Sep 2026 00:00:00 GMT
Rule versions: none
Prompt version: sagolik-report-v1
Sources: New York State Department of Taxation and Finance New York City Department of Finance New York City Department of Finance Internal Revenue Service — FIRPTA withholding Internal Revenue Service — nonresident estate tax

This report is analysis, not legal, tax or investment advice. Confirm every figure with your professional advisers before signing. Disclaimer