CREDIT FOR SPECIAL ADDITIONAL MORTGAGE RECORDING TAX AVAIABLE FOR PERSONAL INCOME TAXPAYERS
Posted Date: 11/8/2005
For the 2004 tax year, persons, partners in a partnership (including a LLC that is treated like a partnership for federal income tax purposes), estates, trusts, and beneficiaries of estates and trusts who paid the special additional mortgage recording tax to record a mortgage on or after January 1, 2004 on real property located in New York State may be eligible for a credit in the amount of special additional mortgage recording tax paid.
Either a lender or borrowers who paid the special additional mortgage recording tax can claim the credit. The lender usually pays the special additional mortgage recording tax for residential mortgages. However, in the case of residential mortgage given to a federal credit union, federal savings bank, or an organization and operated on a nonprofit basis and exempt from federal income tax under Section 501(a) of the Internal revenue Code, the borrower pays the tax.
To claim the credit, Form IT-256 Claim for special additional mortgage recording tax credit should be completed and sent with the 2004 tax return. If the return has already been filed, the return must be amended to claim the credit. The forms and instructions can be located on the New York State Department of Taxation and Finance website at: http://www.tax.state.ny.us/pdf/2004/inc/it256_2004.pdf.
and http://www.tax.state.ny.us/pdf/2004/inc/it256i_2004.pdf.
If you qualify to claim this credit for 2004 and have already filed your 2004 tax return without claiming the credit, you must amend your 2004 return to claim the credit using the following forms:
1. IT-201 filers – File 2004 Form IT-201-X, Amended resident income tax return. Be sure to complete 2004 Form IT-256, Claim for special additional mortgage recording tax credit and attach it to Form IT-201-X;
2. IT-203 filers – File 2004 Form IT-203-X, Amended nonresident and part year resident income tax return. Be sure to complete 2004 Form IT-256, Claim for special additional mortgage recording tax credit, and attach it to From IT-203-X;
3. IT-204 filers – Use a blank 2004 Form IT-204, Partnership return, and write Amended at the top. Include the amount of the special additional mortgage recording tax credit in the total for line 24. Be sure to complete 2004 Form IT-256, Claim for special additional mortgage recording tax credit, and attach it to your amended Form IT-204. In addition, each partner must file an amended return to claim his or her share of the credit. It is the responsibility of the partnership to inform each partner of his or her distributive share of the special additional mortgage recording tax credit;
4. IT-205 filers – Use a blank 2004 Form IT-205, Fiduciary return, and write Amended at the top. Be sure to complete 2004 Form it-256, Claim for special additional mortgage recording tax credit, and attach it to the amended Form IT-205. In addition, each beneficiary must file an amended return to claim his or her share of the credit (if applicable). It is the responsibility of the estate or trust to inform each beneficiary of his or her share of the credit.
Please note that this tax credit is not allowed if the real property is located in Erie County or any of the counties in the Metropolitan Commuter Transportation District (Queens, Kings, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, Putnam, Dutchess, and Orange counties).
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