Flip Tax

Typically, a charge made by the cooperative corporation or the condominium association against the profit on a resale of a unit. Usually associated with low monthly maintenance fees and is usually expressed as a percentage of the gain on sale. It is often used to finance capital improvements to the buildings. Whether it should be paid by the employee and reimbursed or by the purchaser is a policy matter for the employer. If reimbursed, it is often reported under “Association Fees.”