How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Merlo Your Own Question
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
9573734
Type Your Tax Question Here...
Merlo is online now
A new question is answered every 9 seconds

i own a retail business in ny state. i rent garage space from

This answer was rated:

i own a retail business in ny state. i rent garage space from a man who ownes the property,building,as well as the machinery in the bulding. my rent payment covers the rent, and use of the machinery to run my buisness. my health has been poor and i want to get out of the busness. my land lord has another he says he can rent everything to. so i can just walk away. problem is i owe ny state sales tax. will the state seize his property and machinery cause of my debt. and can he rent to another busness? there are 3 other busneses that share that property with me. a blacktop company, a landscaper, as well as a towing company. my busness is a retail auto repair shop, we do share the space i have the front of the bulding and they use the rear and side, along the road there is only one sign its mine. the others dont have a sign. how if possable can i walk away without my landlord losing everything
HelloCustomer

If you are not an owner of any of the property and only lease the space and the equipment, then the state cannot seize any of that property, nor can they put any liens on the property.

The state can only seize or apply liens to property which you are at least a partial owner of. So they could place liens on any home that you own or other personal assets that you own, even though they are not related to the business.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you.

Merlo and 2 other Tax Specialists are ready to help you
Customer: replied 7 years ago.

thank you 4 your answer. the other part is if he does rent to another retail auto repair shop will the state seize the assets of the new renter?

 

Hello againCustomer

No, the state cannot seize any assets that you are not an owner of. So no matter who rents that space or rents that equipment, as long as you are not listed as an owner on the deed of that property, they cannot seize that property or put a lien on it.

As I said earlier, they could come after your personal assets that are not related to the business. This would include any personal proprty that you own and they could also put a levy on your personal bank accounts. But they cannot sieze or place liens on any of the property or equipment that you were merely leasing.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank youCustomer

Merlo and 2 other Tax Specialists are ready to help you
Customer: replied 7 years ago.
thank you.
Thank you, XXXXX XXXXX me know if you have more questions.

Related Tax Questions