NY Nonresident owners of Real Estate or Coop owners

[Uncle Sam]

NYS DTF just announced today a new policy of nonresident owners of NY real estate or coops, that when
they sell their real estate, they must file a new form and pay estimate taxes -

Updated 2021 Forms IT-2663, Nonresident Real Property Estimated Income Tax Payment Form and IT-2664, Nonresident Cooperative Unit Estimated Income Tax Payment Form

The Department of Taxation and Finance has posted updated 2021 Forms IT-2663 and IT-2664. These forms are filed by nonresidents of New York State to pay estimated personal income tax on the sale or transfer of real property or a cooperative unit located in New York State during 2021 which is calculated using the highest New York State personal income tax rate. The 2021-2022 New York State budget was signed into law on April 19, 2021, and increased the highest New York State personal income tax rate to 10.90% for the 2021 tax year. The 2021 Forms IT-2663 and IT-2664 have been updated to account for this change. To view the updated forms, visit: Form IT-2663, Nonresident Real Property Estimated Income Tax Payment Form Form IT-2664, Nonresident Cooperative Unit Estimated Income Tax Payment Form

[Rapid Robert]

Your link is not helpful, it just takes me to an AOL mail login screen. https //mail dot aol dot com/webmail-std/en-us/suite

Is there a difference between "paying estimated taxes" and "withholding"? Is it mandatory, or if not, what is the penalty for not doing it?

I ask because a number of states, including California, already have mandatory withholding on real estate sales (regardless of residency status), requiring a form to be filed if one wants to claim an exception or a non-default calculation of the tax. I'd be surprised if NY hasn't already been doing something like this for a long time.

[ATSMAN]

It is my understanding that NYS requires withholding at the highest tax rate and there is a separate form for RE sales.

[Lion]

Yes, NY increased its highest rate and updated the forms to use the new rate.