What is a TP 584 form?

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The NYS transfer tax is paid when the ownership of real estate located in the State of New York changes hands. The seller will typically need to pay NY state real estate transfer taxes.  When adeed affecting property located in New York, executed by the seller and presented for recording, the NY Real Estate Transfer Tax form, known as a NY TP 584 form needs to be filled out, listing both buyer and seller’s contact information and a form of payment.

Your New York State Real Estate Transfer Fee (TP- 584) form and payment is due within 30 days after your closing date. If not received within this time frame, your payment could be subject to penalties and late payment fees. This NY State Deed & fees must be tendered along with a signed NY TP 584 form within  30 days after the NY closing date to the NY Department of Taxation and Finance or to the respective County Clerk or New York City Registers Office.

What is transfer tax?

Transfer tax is a State of New York (NYS) tax imposed when you sell or transfer property in NY state. The amount of State Transfer Tax due depends on the value and type of property you purchased.

This can be confusing for sellers since there are two types of taxes: municipal (local) transfer tax and statewide transfer tax. There’s also the option to pay your fee in installments over 2 years instead of paying all at once. You may want to consider doing this if you bought a property that will push the total cost above $400,000. See our fees and installment schedule below for more information. You should file TP-584 as soon as possible after closing; penalties for late filing apply.

The NY State Transfer Tax is calculated based on the total purchase price. The first $500,000 is taxed at 0.4%, and the remaining amount above $500,000 up to $1 million is taxed at 0.8%. If you bought a property for over $1 million then the calculation is slightly different: You will still pay the 0.4% tax on the first $500,000 but an additional 1% tax applies to the entire price of the property that is more than $1 million until you reach a maximum tax threshold of $2,300,000 at which point you pay 0.8% on all property in excess of this amount.

A seller typically pays all the transfer taxes. Both parties must sign the TP 584 form.  Real estate can be confusing to non-professionals.  Because of this, we always recommend working with an experienced local real estate agent, and a reputable title company like MacGregor Abstract.  Having the pros on your team will ensure the transaction goes smoothly and is properly recorded.

The Transfer Tax (TP- 584) form is the NYS form used to submit tax payments for residential and commercial properties in New York City.  Buyers of all apartments, condos, houses, co-ops and mixed-use buildings must pay transfer taxes to the city/statein conjunction with taking ownership.  The reason it’s transferred is that these transactions are subject to a number of different property tax classifications.  Other municipalities in the state will also have their own transfer tax policies, so it is very important to work locally to ensure everything is handled properly.

Why do real estate transactions require a tax payment?

The state of New York requires all cities to have a certain level of revenue and property taxes make up the bulk of it. It’s important to note that all of this money goes directly toward improving our neighborhoods through public programs like building new schools, senior centers, after-school programs, and affordable housing.  Real estate transfer taxes generate billions of dollars each year for our state’s general fund as well as various other funds across NYC. 

While nobody likes paying taxes, we all enjoy the services provided by our local and state governments, and as Benjamin Franklin once said: “The only certainties in life are death and taxes”.

 

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