New York Real Property Tax Credit
The New York Real Property Tax Credit is designed to provide relief to taxpayers who own real property in New York State. This credit is available to individuals, partnerships, S corporations, estates, and trusts, and is administered by the New York State Department of Taxation and Finance.
Eligibility and Claiming the Credit
- Individuals must claim the credit on their New York State income tax return using the appropriate form.
- Partnerships and New York S corporations must report the total New York source income on Form IT-2658, which includes income, gain, loss, or deduction connected with New York State sources.
- Estate and trust beneficiaries must receive their share of the credit through Form IT-249, which must be submitted with Form IT-205 (Fiduciary Income Tax Return).
- For manufacturers, the credit is claimed using Form IT-641, which requires a certificate of tax credit issued by the New York State DHSES.
Reporting Requirements
- Form IT-631 is used to compute the credit based on the certificate issued by DHSES. A separate form must be completed for each certificate.
- Form IT-249 must be filed by estates or trusts that divide the credit among themselves and their beneficiaries. The form must show each beneficiary’s share.
- Form IT-212 is required for estates or trusts that divide the credit or addback of credit on early dispositions among themselves and their beneficiaries.
Important Notes
- Unused portions of the credit cannot be refunded but may be carried forward indefinitely to future tax years.
- For nonresident real property owners, estimated income tax payments are reported on Form IT-2663.
- Real estate conveyances in New York City must be reported on Form TP-584-NYC instead of Form TP-584, effective July 1, 2019.
Source:
Form IT-214
Form IT-641
Form IT-249
Form IT-2663
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.