Free Tp 584 Form in PDF

Free Tp 584 Form in PDF

The TP-584 form, officially named as the Combined Real Estate Transfer Tax Return, Credit Line Mortgage Certificate, and Certification of Exemption from the Payment of Estimated Personal Income Tax, is a required document for the State of New York Department of Taxation and Finance. This comprehensive form plays a crucial role in the conveyance process of real estate properties, facilitating various tax-related certifications and computations. To ensure compliance and streamline the transfer process, individuals and entities involved in real estate transactions should familiarize themselves with the form's requirements.

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The TP-584 form serves a critical function within the realm of New York State real estate transactions, embodying a tool by the New York State Department of Taxation and Finance to amalgamate multiple reporting requirements related to real estate transfers. As a comprehensive document, it seeks to streamline the process by combining elements of the Real Estate Transfer Tax Return, Credit Line Mortgage Certificate, and, crucially, the Certification of Exemption from the Payment of Estimated Personal Income Tax. This form becomes applicable the moment a property changes hands, requiring detailed information about the parties involved (both grantor and grantee), as well as a thorough description of the property itself — ranging from its location to its type and the specifics of the conveyance. Beyond its basics, the form delves into the computation of applicable taxes and deductions, offering a pathway for claiming exemptions under certain conditions. It encompasses a spectrum of transaction types, highlighting its flexibility to accommodate various real estate transfer scenarios, all while mandating a declaration of the accuracy of the information provided by the signatures of both parties involved. Understanding the nuances of the TP-584 is vital for ensuring compliance with state tax laws during the transfer of property, making it an indispensable asset for individuals and entities navigating the complexities of real estate transactions in New York.

Preview - Tp 584 Form

TP-584 (3/07)New York State Department of Taxation and Finance

Combined Real Estate

Transfer Tax Return,

Credit Line Mortgage Certificate, and

Certification of Exemption from the

Payment of Estimated Personal Income Tax

Recording office time stamp

See Form TP-584-I, Instructions for Form TP-584, before completing this form. Please print or type.

Schedule A — Information relating to conveyance

Grantor/Transferor

Name (if individual; last, first, middle initial)

 

 

Social security number

Individual

 

 

 

 

 

 

 

Corporation

Mailing address

 

 

 

Social security number

 

 

 

 

 

 

 

Partnership

 

 

 

 

 

 

 

Estate/Trust

City

State

ZIP code

 

Federal employer ident. number

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Grantee/Transferee

Name (if individual: last, first, middle initial)

 

 

Social security number

Individual

 

 

 

 

 

 

 

Corporation

Mailing address

 

 

 

Social security number

 

 

 

 

 

 

 

Partnership

 

 

 

 

 

 

 

Estate/Trust

City

State

ZIP code

 

Federal employer ident. number

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Location and description of property conveyed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax map designation

 

Address

City/village

 

Town

County

 

Section

Block

 

Lot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Type of property conveyed (check applicable box)

1

One- to three-family house

5

2

Residential cooperative

6

3

Residential condominium

7

4

Vacant land

8

Commercial/Industrial

Date of conveyance

 

Apartment building

 

 

 

 

 

 

Office building

 

 

 

Other

 

 

month

day

year

 

 

 

Percentage of real property conveyed which is residential

real property

 

%

(see instructions)

Condition of conveyance (check all that apply)

a. Conveyance of fee interest

b.

 

Acquisition of a controlling interest (state

 

 

percentage acquired

 

 

%)

c.

 

Transfer of a controlling interest (state

 

 

 

percentage transferred

%)

 

 

 

 

 

 

d. Conveyance to cooperative housing corporation

e. Conveyance pursuant to or in lieu of foreclosure or enforcement of security interest (attach Form TP-584.1, Schedule E)

f. Conveyance which consists of a mere change of identify or form of ownership or organization (attach

Form TP-584.1, Schedule F)

g. Conveyance for which credit for tax previously paid will be claimed (attach

Form TP-584.1, Schedule G)

h. Conveyance of cooperative apartment(s)

i. Syndication

j. Conveyance of air rights or development rights

k. Contract assignment

l. Option assignment or surrender

m. Leasehold assignment or surrender

n. Leasehold grant

o. Conveyance of an easement

p. Conveyance for which exemption from transfer tax claimed (complete Schedule B, Part III)

q. Conveyance of property partly within and partly outside the state

r. Other (describe)

For recording officer’s use

Amount received

 

 

Date received

Transaction number

 

Schedule B., Part I

$

 

 

 

 

Schedule B., Part II

$

 

 

 

 

 

 

 

 

 

Page 2 of 4 TP-584 (3/07)

Schedule B — Real estate transfer tax return (Tax Law, Article 31)

Part I – Computation of tax due

1Enter amount of consideration for the conveyance (if you are claiming a total exemption from tax, check the

 

exemption claimed box, enter consideration and proceed to Part III)

 

Exemption claimed

2

Continuing lien deduction (see instructions if property is taken subject to mortgage or lien)

.........................................

 

3

Taxable consideration (subtract line 2 from line 1)

 

 

4

Tax: $2 for each $500, or fractional part thereof, of consideration on line 3

 

 

5

Amount of credit claimed (see instructions and attach Form TP-584.1, Schedule G)

 

 

6

Total tax due* (subtract line 5 from line 4)

 

 

Part II – Computation of additional tax due on the conveyance of residential real property for $1 million or more

1 Enter amount of consideration for conveyance (from Part I, line 1) ........................................................................

2 Taxable consideration (multiply line 1 by the percentage of the premises which is residential real property, as shown in Schedule A) ...

3 Total additional transfer tax due* (multiply line 2 by 1% (.01)) ..................................................................................

Part III – Explanation of exemption claimed on Part I, line 1 (check any boxes that apply)

The conveyance of real property is exempt from the real estate transfer tax for the following reason:

1.

2.

3.

4.

5.

6.

1.

2.

3.

a.Conveyance is to the United Nations, the United States of America, the state of New York, or any of their instrumentalities, agencies, or political subdivisions (or any public corporation, including a public corporation created pursuant to agreement or

compact with another state or Canada)

a

b. Conveyance is to secure a debt or other obligation

b

c. Conveyance is without additional consideration to confirm, correct, modify, or supplement a prior conveyance

c

d. Conveyance of real property is without consideration and not in connection with a sale, including conveyances conveying

 

realty as bona fide gifts

d

e. Conveyance is given in connection with a tax sale

e

f.Conveyance is a mere change of identity or form of ownership or organization where there is no change in beneficial ownership. (This exemption cannot be claimed for a conveyance to a cooperative housing corporation of real property

comprising the cooperative dwelling or dwellings.) Attach Form TP-584.1, Schedule F

f

g. Conveyance consists of deed of partition

g

h. Conveyance is given pursuant to the federal Bankruptcy Act

h

i. Conveyance consists of the execution of a contract to sell real property, without the use or occupancy of such property, or

 

the granting of an option to purchase real property, without the use or occupancy of such property

i

j.Conveyance of an option or contract to purchase real property with the use or occupancy of such property where the consideration is less than $200,000 and such property was used solely by the grantor as the grantor’s personal residence and consists of a one-, two-, or three-family house, an individual residential condominium unit, or the sale of stock

in a cooperative housing corporation in connection with the grant or transfer of a proprietary leasehold covering an

individual residential cooperative apartment

j

k. Conveyance is not a conveyance within the meaning of Tax Law, Article 31, section 1401(e) (attach documents

 

supporting such claim)

k

l. Other (attach explanation)

l

*Please make check(s) payable to the county clerk where the recording is to take place. If the recording is to take place in New York City, make check(s) payable to the NYC Department of Finance. If a recording is not required, send this return and your check(s) made payable to the NYS Department of Taxation and Finance, directly to the NYS Tax Department, RETT Return Processing, PO Box 5045, Albany NY 12205-5045.

Page 3 of 4 TP-584 (3/07)

Schedule C — Credit Line Mortgage Certificate (Tax Law, Article 11)

Complete the following only if the interest being transferred is a fee simple interest.

I (we) certify that: (check the appropriate box)

1.

2.

3.

4.

The real property being sold or transferred is not subject to an outstanding credit line mortgage.

The real property being sold or transferred is subject to an outstanding credit line mortgage. However, an exemption from the tax is claimed for the following reason:

The transfer of real property is a transfer of a fee simple interest to a person or persons who held a fee simple interest in the real property (whether as a joint tenant, a tenant in common or otherwise) immediately before the transfer.

The transfer of real property is (A) to a person or persons related by blood, marriage or adoption to the original obligor or to one or more of the original obligors or (B) to a person or entity where 50% or more of the beneficial interest in such real property after the transfer is held by the transferor or such related person or persons (as in the case of a transfer to a trustee for the benefit of a minor or the transfer to a trust for the benefit of the transferor).

The transfer of real property is a transfer to a trustee in bankruptcy, a receiver, assignee, or other officer of a court.

The maximum principal amount secured by the credit line mortgage is $3,000,000 or more, and the real property being sold or transferred is not principally improved nor will it be improved by a one- to six-family owner-occupied residence or dwelling.

Please note: for purposes of determining whether the maximum principal amount secured is $3,000,000 or more as described above, the amounts secured by two or more credit line mortgages may be aggregated under certain circumstances. See TSB-M-96(6)-R for more information regarding these aggregation requirements.

Other (attach detailed explanation).

The real property being transferred is presently subject to an outstanding credit line mortgage. However, no tax is due for the following reason:

A certificate of discharge of the credit line mortgage is being offered at the time of recording the deed.

A check has been drawn payable for transmission to the credit line mortgagee or his agent for the balance due, and a satisfaction of such mortgage will be recorded as soon as it is available.

The real property being transferred is subject to an outstanding credit line mortgage recorded in

(insert liber and page or reel or other identification of the mortgage). The maximum principal amount of debt or obligation secured

by the mortgage is. No exemption from tax is claimed and the tax of

is being paid herewith. (Make check payable to county clerk where deed will be recorded or, if the recording is to take place in New York City, make check payable to the NYC Department of Finance.)

Signature (both the grantor(s) and grantee(s) must sign)

The undersigned certify that the above information contained in schedules A, B, and C, including any return, certification, schedule, or attachment, is to the best of his/her knowledge, true and complete, and authorize the person(s) submitting such form on their behalf to receive a copy for purposes of recording the deed or other instrument effecting the conveyance.

Grantor signature

Title

Grantee signature

Title

Grantor signature

Title

Grantee signature

Title

Reminder: Did you complete all of the required information in Schedules A, B, and C? Are you required to complete Schedule D? If you checked e, f, or g in Schedule A, did you complete Form TP-584.1? Have you attached your check(s) made payable to the county clerk where recording will take place or, if the recording is in New York City, to the NYC Department of Finance? If no recording is required, send your check(s), made payable to the Department of Taxation and Finance, directly to the NYS Tax Department, RETT Return Processing, PO Box 5045, Albany NY 12205-5045.

Page 4 of 4 TP-584 (3/07)

Schedule D - Certification of exemption from the payment of estimated personal income tax (Tax Law, Article 22, section 663)

Complete the following only if a fee simple interest or a cooperative unit is being transferred by an individual or estate or trust.

Part I - New York State residents

If you are a New York State resident transferor(s)/seller(s) listed in Schedule A of Form TP-584 (or an attachment to Form TP-584), you must sign the certification below. If one or more transferors/sellers of the real property or cooperative unit is a resident of New York State, each resident transferor/seller must sign in the space provided. If more space is needed, please photocopy this Schedule D and submit as many schedules as necessary to accommodate all resident transferors/sellers.

Certification of resident transferor(s)/seller(s)

This is to certify that at the time of the sale or transfer of the real property or cooperative unit, the transferor(s)/seller(s) as signed below was a resident of New York State, and therefore is not required to pay estimated personal income tax under Tax Law, section 663(a) upon the sale or transfer of this real property or cooperative unit.

Signature

Print full name

Date

 

 

 

Signature

Print full name

Date

 

 

 

Signature

Print full name

Date

 

 

 

Signature

Print full name

Date

 

 

 

Note: A resident of New York State may still be required to pay estimated tax under Tax Law, section 685(c), but not as a condition of recording a deed.

Part II - Nonresidents of New York State

If you are a nonresident of New York State listed as a transferor/seller in Schedule A of Form TP-584 (or an attachment to Form TP-584) but are not required to pay estimated personal income tax because one of the exemptions below applies under Tax Law, section 663(c), check the box of the appropriate exemption below. If any one of the exemptions below applies to the transferor(s)/seller(s), that transferor(s)/seller(s) is not required to pay estimated personal income tax to New York State under Tax Law, section 663. Each nonresident transferor/seller who qualifies under one of the exemptions below must sign in the space provided. If more space is needed, please photocopy this Schedule D and submit as many schedules as necessary to accommodate all nonresident transferors/sellers.

If none of these exemption statements apply, you must complete Form IT-2663, Nonresident Real Property Estimated Income Tax Payment Form, or Form IT-2664, Nonresident Cooperative Unit Estimated Income Tax Payment Form. For more information, see Payment of estimated personal income tax, on page 1 of Form TP-584-I.

Exemption for nonresident transferor(s)/seller(s)

This is to certify that at the time of the sale or transfer of the real property or cooperative unit, the transferor(s)/seller(s) (grantor) of this real property or cooperative unit was a nonresident of New York State, but is not required to pay estimated personal income tax under Tax Law, section 663 due to one of the following exemptions:

The real property or cooperative unit being sold or transferred qualifies in total as the transferor’s/seller’s principal residence

(within the meaning of Internal Revenue Code, section 121) from

 

to

 

(see instructions).

 

 

 

Date

 

Date

The transferor/seller is a mortgagor conveying the mortgaged property to a mortgagee in foreclosure, or in lieu of foreclosure with no additional consideration.

The transferor or transferee is an agency or authority of the United States of America, an agency or authority of the state of New York, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Government National Mortgage Association, or a private mortgage insurance company.

Signature

Print full name

Date

 

 

 

Signature

Print full name

Date

 

 

 

Signature

Print full name

Date

 

 

 

Signature

Print full name

Date

 

 

 

Document Specs

Fact Name Detail
Form Designation TP-584 (3/07)
Issuing Authority New York State Department of Taxation and Finance
Form Purpose Combined Real Estate Transfer Tax Return, Credit Line Mortgage Certificate, and Certification of Exemption from the Payment of Estimated Personal Income Tax
Primary Use Recording of real estate conveyance transactions
Instructions Document Form TP-584-I, Instructions for Form TP-584
Governing Law Tax Law, Articles 11, 22, 31
Entry Requirement Details such as names, social security numbers, addresses, property description, conveyance details, and tax computation must be filled
Specific Sections Schedule A (Information relating to conveyance), Schedule B (Real estate transfer tax return), Schedule C (Credit Line Mortgage Certificate), and Schedule D (Certification of exemption from the payment of estimated personal income tax)
Signature Requirement Both the grantor(s) and the grantee(s) must sign the form

Instructions on Writing Tp 584

Filling out the TP-584 form is an essential step for completing certain real estate transactions in New York State. This comprehensive document combines the needed paperwork for Real Estate Transfer Tax returns, Credit Line Mortgage certificates, and certifications exempting from estimated personal income tax payments under specific conditions. Ensuring accuracy and completeness when filling out this form is vital for a smooth and legally sound transfer process. Here are the steps to guide you through filling out the TP-584 form:

  1. Prepare in advance: Gather all necessary documents and information regarding the property and parties involved in the conveyance to ensure accuracy.
  2. Schedule A - Information Relating to Conveyance:
    • Enter the grantor/transferor’s and grantee/transferee's name(s), social security or federal employer identification number(s), and mailing address(es).
    • Provide the location description of the property, tax map designation, type of property being conveyed, and the date of conveyance.
    • Specify the percentage of the real property conveyed which is residential, and check the applicable condition(s) of the conveyance.
  3. Schedule B - Real Estate Transfer Tax Return:
    • Compute the tax due by entering the consideration amount for the conveyance and any deductions.
    • Complete the additional tax due section if the residential property conveyance exceeds $1 million.
    • Check the appropriate box in Part III to explain the exemption claimed from the real estate transfer tax.
  4. Schedule C - Credit Line Mortgage Certificate:
    • Check the appropriate box regarding the credit line mortgage status of the property and complete the required information.
  5. Signatures: Ensure both the grantor(s) and grantee(s) sign the form, certifying that the information provided is accurate to the best of their knowledge.
  6. Review all completed sections of the form to ensure completeness and accuracy.
  7. Attachment and Payment: Attach any required schedules and documents referenced in the form. Prepare a check(s) for the amount due, payable to the appropriate office as indicated in the instructions based on where the document will be recorded.
  8. Submission: Submit the TP-584 form along with any attachments and the payment to the county clerk's office where the property is located or, if applicable, directly to the New York State Department of Taxation and Finance.

Following these steps carefully will help to ensure that your real estate transaction complies with New York State laws and regulations. Keeping copies of the submitted form and any correspondence or receipts from the taxing authority is also advisable for your records.

Understanding Tp 584

What is the TP-584 form used for in New York State?

The TP-584 form, provided by the New York State Department of Taxation and Finance, is utilized for several key purposes related to real estate transactions. Primarily, it serves as a combined Real Estate Transfer Tax Return, Credit Line Mortgage Certificate, and Certification of Exemption from the Payment of Estimated Personal Income Tax. This form is necessary for recording various real estate transactions, including conveyances of property, the acquisition or transfer of controlling interests in real property entities, and certain exemptions from transfer tax and estimated personal income tax obligations. The accurate completion of this document is crucial for ensuring compliance with state tax laws during the transfer of real property.

Who needs to file the TP-584 form?

Individuals or entities involved in the transfer of real property in New York State are required to file the TP-584 form. This encompasses a wide range of transactions, including but not limited to the sale, gift, or exchange of property, the conveyance of property to a trust, or the acquisition of a controlling interest in an entity that owns real property. Both grantors (sellers) and grantees (buyers) must ensure that the form is accurately completed and submitted as part of the documentation process for the real estate transaction. Whether the transaction involves residential, commercial, or other types of real estate, filing this form is a necessary step for properly documenting the change in property ownership and for determining any applicable taxes or exemptions.

What are the penalties for not filing the TP-584 form?

Failing to file the TP-584 form, or submitting it with incorrect or incomplete information, can result in various penalties. These may include fines, interests on unpaid taxes, and delays in recording the deed or other instruments effecting the conveyance. The State of New York takes compliance with tax obligations seriously, and such non-compliance can complicate the legal process of transferring property. It is important for parties involved in real estate transactions to understand their responsibilities and to ensure that the TP-584 form, along with any required attachments and applicable payments for transfer taxes, is filed accurately and timely with the appropriate county clerk's office or the New York City Department of Finance, as applicable.

Where can I find instructions for completing the TP-584 form?

Instructions for completing the TP-584 form are available through the New York State Department of Taxation and Finance's website. These instructions provide detailed information on how to accurately fill out each section of the form, including explanations of terms, descriptions of various transaction types, and guidance on computing and reporting transfer taxes. The instructions also outline the necessary documentation and attachments required based on the specifics of the real estate transaction. It is highly recommended that individuals and entities engaged in the transfer of real property in New York State refer to these instructions to ensure compliance with state tax laws and to avoid potential penalties associated with incorrect filing.

Common mistakes

Filling out the TP-584 form, a combined real estate transfer tax return in New York, often involves complexities that can lead to errors. One common mistake is incorrectly detailing the grantor/transferor and grantee/transferee information. It's critical to enter full names accurately and provide the correct social security or federal employer identification numbers. Missing or inaccurate information in this section can lead to processing delays or the return being rejected.

Another error occurs in Schedule A, concerning the property's location and description. The tax map designation, address, city/village, town, and county must be precisely entered. Failing to correctly describe the property can lead to misinterpretations of the property being transferred, potentially affecting tax calculations or legal standing.

In the computation of tax due on Part I of Schedule B, an often-overlooked mistake is not subtracting the continuing lien deduction from the total amount of consideration for the conveyance. This oversight can result in an inflated taxable consideration and subsequently higher tax liability than necessary.

Some filers mistakenly neglect to attach relevant schedules or certifications required for certain types of conveyances, such as Form TP-584.1 for various conditions of conveyance listed in Schedule A. Each specific case, like conveyance pursuant to foreclosure or a change in form of ownership, necessitates attaching the appropriate schedule or certification to avoid processing hiccups.

Incorrectly claiming exemptions in Part III of Schedule B is another common error. It's essential to thoroughly review the criteria for each exemption before making a claim. Unwarranted claims for exemption from the real estate transfer tax can trigger audits, additional taxes, penalties, and interest.

Last but not least, a failure to accurately complete Schedule D by both residents and nonresidents regarding the certification of exemption from the payment of estimated personal income tax can result in unnecessary tax liabilities or penalties. Particularly for nonresidents, not checking the correct exemption or failing to complete additional required forms like IT-2663 or IT-2664 can have significant financial implications.

Documents used along the form

When processing real estate transactions in New York State, the TP-584 form is a critical document. However, it's often not the only form you'll need. Several other documents commonly accompany the TP-584 form to ensure a smooth and legally compliant transfer of property. Here’s a look at some of these essential forms:

  • RP-5217-NYC: This real property transfer report is specifically for New York City and is required for residential, commercial, or mixed-use property transfers. It's a filing receipt necessary for updating the tax maps and is filed along with the deed.
  • Affidavit of Consideration (ACRIS): In New York City, this affidavit, part of the Automated City Register Information System (ACRIS), is used to report the consideration in real estate transactions. It helps in calculating the taxes due on the sale or transfer of real property.
  • IT-2663: Nonresident sellers of real property in New York State must file this form for the estimated personal income tax payment on the sale of the property. It must be completed and submitted at the time of sale if the seller is a non-resident.
  • IT-2664: Similar to the IT-2663, this form is used by nonresidents who sell shares in a cooperative housing corporation, in connection with the sale of a cooperative apartment. This requires the nonresident to calculate and pay estimated income tax on the gain from the sale.
  • RP-5217-PN: Used outside of New York City, this real property transfer report is required for documenting residential, commercial, or mixed-use property sales or transfers across the rest of New York State. It is vital for the proper recording and filing of property transfers.

In addition to the TP-584 form, these documents play critical roles in the completion of a real estate transaction. They ensure compliance with state taxation laws, document the transfer of property accurately, and calculate the necessary taxes associated with the sale or transfer of real estate. Understanding the importance and function of each can significantly streamline the transfer process for all parties involved.

Similar forms

The TP-584 form, known officially as the Combined Real Estate Transfer Tax Return, Credit Line Mortgage Certificate, and Certification of Exemption from the Payment of Estimated Personal Income Tax, is a comprehensive document used in the state of New York for various real estate transactions. It addresses multiple facets of a property transfer, combining tax declarations, specifics on mortgage arrangements, and exemptions on personal income tax estimations tied to the real estate transaction. For those navigating real estate processes, understanding documents with similar functions or requirements can be crucial. Below are seven forms or documents that share similarities with the TP-584 in various aspects.

One similar form is the IT-2663, the Nonresident Real Property Estimated Income Tax Payment Form. This document is needed when nonresidents of New York State sell or transfer real property located within the state. It bears resemblance to the TP-584 as it deals with the tax implications of real estate transactions, specifically requiring the calculation and payment of estimated income tax due on the gain from the sale of the property. The main parallel lies in their shared goal to facilitate tax compliance related to property transactions, although the IT-2663 specifically targets nonresident transferors.

The Real Property Transfer Report, known as Form RP-5217, is used to document the transfer of real property and is often filed alongside the TP-584. It collects detailed information about the transaction, including the property's location, sale price, and buyer and seller information. Its connection to the TP-584 comes from its role in the real estate transfer process, with both forms being integral to the recording and tax assessment of property transfers within the state.

The Grant Deed is another document that goes hand-in-hand with the TP-584 during property transfers. While the TP-584 handles the tax aspects, a Grant Deed operates as the legal document that transfers ownership of real property from one party to another. It verifies that the grantor (seller) has the right to transfer the property and discloses any restrictions. The linkage between these documents underscores the intricate balance between legal conveyance and fiscal responsibility in property transactions.

Mortgage Satisfaction Forms play a crucial role when a property with an existing mortgage is transferred, and they connect with the TP-584 through the mortgage-related aspects covered in the form. When a mortgage is paid in full, this document is filed to indicate that the borrower has fulfilled their loan obligation, which directly impacts the tax and credit considerations outlined in the TP-584, particularly in the Credit Line Mortgage Certificate section.

The Affidavit of Exemption is akin to parts of the TP-584 that allow for claiming exemptions from certain taxes or fees associated with property transfers. This affidavit is used to assert eligibility for specific exemptions based on the nature of the transaction or the parties involved, such as transfers between family members or for nominal consideration. It correlates with the TP-584 by offering a means to legally justify deviations from standard tax calculations.

The TP-584.1, Schedule E, and Schedule F forms are directly related to the TP-584, designed as supplementary forms for specific transaction types, such as conveyances in lieu of foreclosure or that involve mere changes in identity or form of ownership. They provide detailed information that supports the main TP-584 form, ensuring comprehensive documentation of complex transaction scenarios. Their direct association with the TP-584 underscores the multifaceted nature of real estate transactions and the need for meticulous tax and legal reporting.

Lastly, the Warranty Deed is a document that, like the Grant Deed, evidences the transfer of property rights, but with added assurances regarding the title's status. It guarantees that the grantor holds a clear title to the property and has the right to sell it, which is essential for the legal and tax implications covered in the TP-584. While the Warranty Deed ensures the quality of the property title, the TP-584 captures the resultant financial and tax responsibilities, illustrating their interconnected roles in property conveyance.

Each of these documents serves specific functions in the realm of real estate, but together with the TP-584, they encapsulate the legal, financial, and procedural complexities of transferring property. Understanding their similarities and differences is key to navigating real estate transactions successfully.

Dos and Don'ts

When approaching the task of filling out the TP-584 form for the New York State Department of Taxation and Finance, it's essential to follow specific guidelines to ensure the process is completed accurately and efficiently. Understanding the do's and don'ts can save time, prevent errors, and ensure compliance with state regulations. Below is a detailed list to guide you through this process:

  • Do review the Form TP-584-I, which provides detailed instructions on how to accurately complete the TP-584 form. This guide is an invaluable resource for avoiding common mistakes.
  • Do ensure all information is printed or typed clearly to prevent any misunderstandings or delays related to illegible handwriting.
  • Do provide accurate details for both the grantor/transferor and grantee/transferee, including the correct social security numbers or Federal employer identification numbers, as these are crucial for identification and tax purposes.
  • Do thoroughly describe the location and description of the property being conveyed. Precise information helps to avoid any confusion regarding the property in question.
  • Do check the appropriate boxes that accurately reflect the condition of the conveyance. This can include a variety of situations such as a conveyance of fee interest or acquisition of a controlling interest.
  • Do attach any required additional forms or schedules if the conditions listed in the basic form necessitate their inclusion, such as Form TP-584.1 for certain conveyances.
  • Do not leave any required fields blank. Incomplete forms can cause delays and may result in the need to resubmit the form, prolonging the transaction.
  • Do not forget to sign and title at the end of the form. An unsigned form is considered incomplete and will not be processed.
  • Do not overlook the requirement to attach payment if applicable. Ensuring that checks are made payable to the appropriate office, whether the county clerk or the NYC Department of Finance, is crucial for the processing of the TP-584 form.

By following these guidelines, individuals can navigate the complexities of the TP-584 form with confidence, ensuring a smooth and compliant real estate transfer process.

Misconceptions

Understanding the complexities of tax forms related to real estate transactions can be challenging. This includes misconceptions around Form TP-584, which plays a crucial role in the conveyance of property within New York State. Clarifying these common misunderstandings can greatly assist in ensuring compliance and accuracy in real estate transactions. Here are five common misconceptions about the Form TP-584:

  • Misconception 1: Form TP-584 is only necessary for the sale of residential properties.

    This is incorrect. While the form is commonly associated with residential property transfers, it is required for the conveyance of a wide range of real property interests, including commercial and industrial properties, vacant land, and cooperative apartments. The form captures various types of property transactions, not just those involving one- to three-family houses.

  • Misconception 2: Only the grantee needs to complete Form TP-584.

    Both the grantor (seller) and the grantee (buyer) must provide information on the form. It requires details from both parties involved in the transfer, including their names, addresses, and taxpayer identification numbers. This collaborative completion ensures that all relevant information regarding the transaction and the parties involved is accurately captured.

  • Misconception 3: The form is solely for reporting purposes and does not involve tax payment.

    Form TP-584 is not just an informational document; it plays a direct role in the taxation process related to real estate transfers. The form calculates the real estate transfer tax due on the conveyance and includes sections for calculating additional taxes on specific transfers, such as the additional transfer tax for residential real property sold for $1 million or more. Credit for tax previously paid and exemptions can also be claimed through this form.

  • Misconception 4: All conveyances are taxable and none are exempt.

    There are numerous exemptions to the real estate transfer tax that can be claimed through Form TP-584. For example, conveyances to certain government bodies or instrumentalities are exempt. Similarly, conveyances without consideration or for confirming a prior transfer can be exempt. The form includes a detailed section (Part III) where these exemptions can be selected and explained.

  • Misconception 5: Form TP-584 doesn't apply to transfers involving easements or air rights.

    Contrary to this belief, the form encompasses a wide array of real property interests beyond the physical land and structures. It specifically includes options for conveying easements, air rights, and development rights. This underlines the comprehensive scope of the form, capturing the diversity of real estate interests and transactions in New York State.

By demystifying these misconceptions, individuals and professionals involved in real estate transactions can better navigate the requirements of Form TP-584, ensuring that all necessary information is correctly reported and the appropriate taxes are calculated and paid. This contributes to a smoother transaction process and adherence to New York State’s tax laws.

Key takeaways

When dealing with the TP-584 form, used in the state of New York for transactions involving the transfer of real estate, there are several key takeaways that individuals and professionals should be aware of. These insights ensure the process is handled correctly and complies with state regulations.

  • Understand the purpose: The TP-584 form serves multiple functions including acting as a combined Real Estate Transfer Tax Return, Credit Line Mortgage Certificate, and Certification of Exemption from the Payment of Estimated Personal Income Tax. Understanding each section is crucial for accurately reporting and calculating any taxes due or exemptions applicable.

  • Complete all relevant sections: Depending on the nature of the transaction, different parts of the form will apply. Schedule A requires detailed information about the conveyance, Schedule B is concerned with the computation of tax due, Schedule C applies if a credit line mortgage is involved, and Schedule D is for certifying exemption from estimated personal income tax payments.

  • Accurate identification of parties: The TP-584 form requires the precise identification of both the grantor/transferor and the grantee/transferee, including their names, social security numbers or federal employer identification numbers, and addresses. This information is foundational for the legal transfer of the property.

  • Details of the property and conveyance: It's important to accurately describe the property being transferred, including its location, tax map designation, and the type of property. The form also seeks clarity on the nature of the conveyance, such as whether it's a conveyance of fee interest, part of a foreclosure, or involves a cooperative housing corporation, among other conditions.

  • Calculation of taxes: Schedules B and C include detailed instructions for calculating the real estate transfer tax and any additional taxes applicable under specific circumstances. These calculations depend on the amount of consideration for the conveyance and the proportion of the property that is residential real property.

  • Claiming exemptions: Schedule B Part III and Schedule D provide opportunities to claim exemptions from the real estate transfer tax and estimated personal income tax, respectively. Understanding these exemptions can save significant money and requires careful consideration of the circumstances of both the conveyance and the transferor's residency status.

In summary, accurately completing the TP-584 form is critical for any real estate transaction in New York. It ensures compliance with tax obligations and facilitates the smooth legal transfer of property. Individuals involved in such transactions should carefully review all instructions associated with the form or consult a professional to navigate the complexities of New York's real estate transfer tax laws.

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