Mandatory IRA Distributions Are Income for Luxury Deregulation Purposes
LVT Number: #24533
Landlord applied for high-rent/high-income deregulation of tenant's apartment in 2008. The DHCR ruled for landlord, based on its finding that tenant's adjusted household income in 2006 and 2007 exceeded the deregulation threshold. Tenant appealed and lost. The appeals court found that mandatory individual retirement account (IRA) distributions received by tenant were reported as income in tenant's New York State income tax returns for 2006 and 2007 and therefore were properly included in the calculation for luxury deregulation purposes of tenant's income for those years.
Schiffren v. Lawlor: 955 NYS2d 44, 2012 NY Slip Op 08445 (App. Div. 1 Dept.; 12/11/12; Gonzalez, PJ, Saxe, Catterson, Acosta, Gische, JJ)