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TP-584.1 (7/19)                                         Department of Taxation and Finance                                                                                For office use only
                                           Real Estate Transfer Tax Return
                                           Supplemental Schedules

Attach this form to Form TP-584 or TP-584-NYC with the applicable schedule completed.

Please print or type
 Name of Grantor (as shown on Form TP-584)                                                      Grantor’s Social Security number or EIN

 Name of Grantee (as shown on Form TP-584)                                                      Grantee’s Social Security number or EIN

 Location of property conveyed (as shown on Form TP-584)

Schedule E – Conveyance pursuant to or in lieu of foreclosure or pursuant to a secured party’s enforcement of a lien or other   
        security interest (Complete the applicable part if condition e was marked in Schedule A, Form TP-584 or TP-584-NYC)

Part 1 – Conveyance pursuant to a mortgage foreclosure or any other action governed by the Real Property Actions and                                                                          
   Proceedings Law
 1  Amount of foreclosure judgment or bid price (see instructions)  .......................................................................                             1
 2  Amount of any other liens or encumbrances (not included on line 1) remaining on property after the
     conveyance................................................................................................................................................         2
 3  Add lines 1 and 2 (if debt is nonrecourse, skip line 4 and enter this amount on line 5) .....................................                                       3
 4  If recourse debt, enter the fair market value of real property (see instructions) ...............................................                                   4
 5  Consideration for conveyance (if recourse debt, enter the amount from line 3 or line 4, whichever is lower;
       also enter on Form TP-584 or TP-584-NYC, Schedule B, Part 1, line 1) ...............................................................                             5

Part 2 – Conveyance to a mortgagee or lienor in lieu of foreclosure
 6  Unpaid balance of debt secured by mortgage (see instructions) .....................................................................                                 6
 7  Amount of any other liens or encumbrances (not included on line 6) remaining on property after the
     conveyance................................................................................................................................................         7
 8  Add lines 6 and 7 (if debt is nonrecourse, skip line 9 and enter this amount on line 10) ...................................                                        8
 9  If recourse debt, enter the fair market value of real property (see instructions) ...............................................                                   9
 10  If recourse debt, enter the amount from line 8 or line 9, whichever is lower .................................................                                     10
 11  Any other amount paid by the grantee to the grantor for the real property ...................................................                                      11
 12  Consideration for conveyance (add lines 10 and 11; enter here and on Form TP-584 or TP-584-NYC, Schedule B, 
       Part 1,line 1)  ................................................................................................................................................ 12

Part 3 – Conveyance of real property in lieu of or pursuant to a secured party’s enforcement of a lien, security interest or other  
   rights on or in shares of stock in a cooperative housing corporation and/or associated proprietary lease(s)
 13  Unpaid balance of debt secured by the pledge of the shares of stock in the cooperative housing
       corporation and/or associated proprietary lease(s) (see instructions) ..........................................................                                 13
 14  Amount of any other liens, security interest or other obligations (not included on line 13) remaining
       on the shares of stock in the cooperative housing corporation and/or associated proprietary
       lease(s) after the conveyance....................................................................................................................                14
 15  Add lines 13 and 14 (if debt is nonrecourse, skip line 16 and enter this amount on line 17) .............................                                          15
 16  If recourse debt, enter fair market value of the shares of stock in the cooperative housing
       corporation and/or associated proprietary lease(s) (see instructions) ..........................................................                                 16
 17  If recourse debt, enter the amount from line 15 or line 16, whichever is lower .............................................                                       17
 18  Pro rata portion of the total amount of any liens or encumbrances remaining on the real
       property of the cooperative housing corporation after the conveyance (see instructions)............................                                              18
 19  Any other amount paid by the grantee to the grantor for the conveyance ....................................................                                        19
 20  Consideration for conveyance (add lines 17, 18 and 19; enter amount here and on Form TP-584 or TP-584-NYC, 
       Schedule B, Part 1, line 1)  .............................................................................................................................       20

        84100107190094

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Page 2  TP-584.1 (7/19)

Part 4 – Conveyance of real property in lieu of or pursuant to a secured party’s enforcement of a lien, security interest or other 
    rights on or in shares of stock, partnership interests or other instruments (i.e., transfer or acquisition of a controlling 
    interest in any entity with an interest in real property)

 21  Unpaid balance of debt secured by the pledge of the ownership interest in the entity .................................                                         21
 22  Amount of any other liens, security interests or obligations (not included on line 21) remaining
       on the ownership interest in the entity after the conveyance .....................................................................                           22
 23  Amount of any liens or encumbrances remaining on the real property of the entity after the
       conveyance, multiplied by the percentage in the entity being transferred or acquired ..............................                                          23
 24  Amount of any other debt or obligation of the entity, multiplied by the percentage in the entity being
       transferred or acquired ..............................................................................................................................       24
 25  Any other amount paid by the grantee to the grantor for the conveyance ....................................................                                    25
 26 Total (add lines 21 through 25) ..........................................................................................................................      26
 27  Apportionment of amount on line 26 (see instructions) ....................................................................................                     27
 28  Fair market value of real property multiplied by the percentage in the entity being transferred or
     acquired ..................................................................................................................................................... 28
 29  Consideration for conveyance (enter the amount from line 27 or line 28, whichever is less; also enter on
       Form TP-584 or TP-584-NYC, Schedule B, Part 1, line 1) ..................................................................................                    29

Schedule F – Conveyance that consists of a mere change of identity or form of ownership or organization (Complete
          if condition fwas marked in Schedule A, Form TP-584 or TP-584-NYC)
 30  Fair market value of real property at time of conveyance .............................................................................                         30
 31  Percentage of interest conveyed not subject to the mere change exemption ...............................................                                       31
 32  Consideration for conveyance (multiply line 30 by line 31; enter amount here and on Form TP-584 or
       TP-584-NYC, Schedule B, Part 1, line 1) ..........................................................................................................           32
 33  Continuing lien deduction, if applicable (see instructions and multiply continuing lien, if any, by percentage
       of interest conveyed on line 31; enter amount here and on Form TP-584 or TP-584-NYC, Schedule B, Part 1, line 2)                                             33
 34  Taxable consideration (subtract line 33 from line 32; enter amount here and on Form TP-584 or TP-584-NYC,
       Schedule B, Part 1, line 3)  .............................................................................................................................   34

Schedule G – Conveyance for which credit for tax previously paid will be claimed (Complete the applicable part
          if condition g was marked in Schedule A, Form TP-584 or TP-584-NYC)
Part 1 – Computation of credit against tax due on conveyance to the extent tax was paid by grantor on a prior creation
    of leasehold
 35  Value of consideration grantor is not entitled to receive after conveyance    (see instructions) ..........................                                    35
 36  Value of consideration used in original computation to determine the transfer tax due (see instructions) .......                                               36
 37  Percentage of credit to be applied (divide line 35 by line 36) ............................................................................                    37
 38  Transfer tax paid by grantor on prior grant of leasehold (attach copy of original Form TP-584 or TP-584-NYC
       previously filed and proof of payment)  .............................................................................................................        38
 39  Amount of credit to be applied to transfer tax due on current conveyance (multiply line 37 by line 38;
       enter amount here and on Form TP-584, Schedule B, Part 1, line 5 or TP-584-NYC, Schedule B, Part 1, line 7) .......                                          39
Part 2 - Computation of credit against tax due on conveyance of cooperative shares to the extent tax
     was paid on conveyance to the cooperative housing corporation
 40  Number of shares allocated to the unit(s) for which proprietary leasehold(s) is being granted ....................                                             40
 41  Total number of shares of stock in the cooperative housing corporation ......................................................                                  41
 42  Percentage of credit to be applied (see instructions and divide line 40 by line 41) ...............................................                            42
 43  Transfer tax paid on conveyance of the real property to the cooperative housing corporation (attach
       copy of original TP-584 or TP-584-NYC previously filed and proof of payment) .....................................................                           43
 44 Percentageofinterestthatwouldhavequalifiedasamerechangeonconveyancetocooperative
       housing corporation ...................................................................................................................................      44
 45  Proportionate amount of transfer tax paid on conveyance (multiply line 43 by line 44) .....................................                                    45
 46  Amount of credit to be applied to transfer tax due on conveyance of units for which proprietary
       leasehold(s) is being granted (multiply line 42 by line 45; enter amount here and on Form TP-584,
       Schedule B, Part 1, Line 5, or TP-584-NYC, Schedule B, Part 1, line 7)  ..............................................................                       46

          84100207190094

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                                                                                                                                         TP-584.1 (7/19)       Page 3
                                                                       Instructions
                                                                                     to foreclose a mortgage or lien, enter the unpaid balance of the debt secured 
Purpose of Form TP-584.1                                                             by the mortgage or lien. The unpaid balance of the debt includes the principal, 
ThisformmustbecompletedandfiledwithForm           TP-584or TP-584-NYC                interest and other accruals secured by the mortgage or lien.
for all conveyances that are pursuant to or in lieu of foreclosure or any other 
action governed by the Real Property Actions and Proceedings Law and for             Line 7 – Enter the amount of any continuing liens. Do not include the amount of 
conveyances pursuant to a secured party’s enforcement of a lien or other             any liens or encumbrances included on line 6.
security interest, except for such conveyances where part of the debt is recourse    Line 8 – Add lines 6 and 7. If debt is nonrecourse, skip line 9 and enter the 
and part of the debt is nonrecourse (see Schedule E), for conveyances that           line 8 amount on line 10.
consist in whole or in part of a mere change of identity or form of ownership or     Line 9 – Where the debt is recourse, and the grantee is the mortgagee or lienor, 
organization (see Schedule F), and for conveyances for which a credit will be        its agent, nominee or an entity wholly owned by the mortgagee or lienor, enter 
claimed for tax previously paid (see Schedule G).                                    the fair market value of the real property.
Specific instructions                                                                Line 10 – If debt is recourse, enter the amount from line 8 or line 9, whichever is 
                                                                                     lower. If debt is nonrecourse, enter the amount from line 8.
Schedule E                                                                           Line 11 – Enter any other amount paid by the grantee to the grantor for the real 
For purposes of Schedule E, continuing liens are liens or encumbrances that          property.
after the conveyance, remain either on the real property, the shares of stock in 
the cooperative housing corporation and/or proprietary lease(s) or the ownership     Line 12 – Add lines 10 and 11. This the amount of consideration to be entered on 
interest in the entity, depending on whether the conveyance is the type described    FormTP-584or TP-584-NYC,ScheduleB,Part1,line1.
in Part 1, 2, 3, or 4 of Schedule E.                                                 Part 3
Pursuant to section 575.11(a)(2)(ii) of the real estate transfer tax regulations,    Line 13 – Where the conveyance is to a secured party, or its agent, nominee or 
a debt is recourse debt to the extent that, as of the date of conveyance, the        an entity owned by the secured party, who is enforcing a lien, security interest or 
grantor or a person related to the grantor, including any guarantor, bears the       other rights on or in shares of stock in a cooperative housing corporation and/or 
economic risk of loss for the debt beyond any loss attributable to the value of the  associated proprietary lease(s), enter the unpaid balance of the debt secured by 
property securing the debt.                                                          the pledge of the shares of stock in the cooperative housing corporation and/or 
A grantee is related to the mortgagee or lienor to the extent that the mere          associated proprietary lease(s). The unpaid balance of the debt includes the 
change of identity or form of ownership exemption, as provided in Tax Law            principal, interest and other accruals secured by the pledge of the shares and/or 
section 1405(b)(6) would apply to a conveyance by the mortgagee or lienor to the     associated proprietary lease(s).
grantee.                                                                             Line 14 – Enter the amount of any continuing liens, security interests or 
Where the grantee is the mortgagee or lienor, as in the type of conveyances          other obligations remaining on the shares of stock in the cooperative housing 
described in Parts 1 and 2 or the secured party, as in the type of conveyances       corporation and/or associated proprietary lease(s) after the conveyance. Do not 
described in Parts 3 and 4, or its agent, nominee or an entity wholly owned by       include the amount of any liens, security interests or other obligations included 
such mortgagee, lienor or secured party, Schedule E may be used only if the          on line 13.
debt, including continuing liens, is either all recourse or all nonrecourse. If the  Line 15 – Add lines 13 and 14. If debt is nonrecourse, skip line 16 and enter the 
debt is not either all recourse or all nonrecourse, do not use Schedule E. Attach    line 15 amount on line 17.
a separate schedule setting forth the method of computation.                                   Where the debt is recourse and the grantee is the secured party, or its 
                                                                                     Line 16 –
Part 1                                                                               agent, nominee or an entity wholly owned by the secured party, who is enforcing 
Line 1 – If real property is being conveyed pursuant to a mortgage foreclosure       a lien, security interest or other rights on or in shares of stock in a cooperative 
or any other action governed by the Real Property Actions and Proceedings Law        housing corporation and/or associated proprietary lease(s), enter the fair market 
and the grantee is the mortgagee or lienor, its agent, nominee or an entity wholly   value of the shares of stock in the cooperative housing corporation and/or 
owned by the mortgagee or lienor, enter the amount of judgment of foreclosure        associated proprietary lease(s).
or the bid price, whichever is higher. The amount of judgment of foreclosure         Line 17 – If debt is recourse, enter the amount from line 15 or line 16, whichever 
includes any interest accrued through the date of transfer.                          is lower. If debt is nonrecourse, enter the amount from line 15.
If the grantee is a person unrelated to the mortgagee or lienor, regardless          Line 18 – If the conveyance is the original conveyance of shares of stock in a 
whether the debt is recourse or nonrecourse, enter the bid price.                    cooperative housing corporation by the cooperative corporation or cooperative 
If the grantee is an entity partially owned by the mortgagee or lienor and partially plan sponsor, or the subsequent conveyance of stock in a cooperative housing 
owned by a person unrelated to the mortgagee or lienor, enter the sum of (1) the     corporation for a unit other than an individual residential unit, enter the pro 
amount of judgment of foreclosure or the bid price, whichever is higher, multiplied  rata portion of the total amount of any liens or encumbrances that remain on 
bythepercentagethatrepresentsthemortgagee’sorlienor’sbeneficialinterestin            the real property of the cooperative housing corporation after the conveyance. 
the grantee and (2) the bid price multiplied by the percentage that represents the   The pro rata portion is determined by multiplying the total unpaid principal of the 
unrelatedperson’sbeneficialinterestinthegrantee.                                     mortgage by a fraction, the numerator of which is the number of shares of stock 
For this computation, the grantee is deemed to be the party who ultimately           in the cooperative housing corporation being conveyed in connection with the 
acquires the real property as a result of a mortgage foreclosure sale.               transfer of the proprietary lease(s) and the denominator is the total number of 
                                                                                     shares of stock in the cooperative housing corporation.
Example: X, a mortgagee, has the highest bid at a foreclosure sale. X assigns        Line 19 – Enter any other amount paid by the grantee to the grantor for the 
the bid to an unrelated third party, Z, who ultimately acquires the property. Z is   conveyance.
the grantee. The consideration for the conveyance of the real property is the bid 
price paid by Z to the referee.                                                      Line 20 – Add lines 17, 18 and 19. This is the amount of consideration to be 
Line 2 – Enter the amount of any continuing liens. Do not include the amount of      enteredonForm TP-584or TP-584-NYC,ScheduleB,Part1,line1.
any liens or encumbrances included on line 1.                                        Part 4 
Line 3 – Add lines 1 and 2. If debt is nonrecourse or if the grantee is a person     Line 21 – If the conveyance is to a secured party, or its agent, nominee or an 
unrelated to the mortgagee or lienor, skip line 4 and enter the line 3 amount on     entity owned by the secured party, who is enforcing a lien, security interest or 
line 5.                                                                              other rights on or in shares of stock, partnership interests or other instruments 
Line 4 – Where the debt is recourse debt and the grantee is the mortgagee or         (i.e., the transfer or acquisition of a controlling interest in an entity with an interest 
lienor, its agent, nominee or an entity wholly owned by the mortgagee or lienor,     in real property), enter the unpaid balance of the debt secured by the pledge of 
enter the fair market value of the real property.                                    the ownership interest in the entity. The unpaid balance of the debt includes the 
                                                                                     principal, interest and other accruals secured by the pledge of the ownership 
Where the grantee is an entity partially owned by the mortgagee or lienor            interest.
and partially owned by a person unrelated to the mortgagee or lienor, if the         Line 22 – Enter the amount of any other liens, security interests or other 
percentagethatrepresentsthemortgagee’sorlienor’sbeneficialinterestinthe              obligation remaining on the ownership interest in the entity after the conveyance. 
grantee multiplied by the sum of the higher of the judgment of foreclosure or bid    Do not include the amount of any liens, security interests or other obligations 
price and any continuing liens, exceeds the fair market value of the real property   included on line 21.
multiplied by such mortgagee’s or lienor’s percentage, enter the sum of (1) the 
fair market value of the real property multiplied by the percentage that represents  Line 23 – Enter the amount of any liens or encumbrances remaining on the real 
themortgagee’sorlienor’sbeneficialinterestinthegrantee,and(2)thebidprice             property of the entity multiplied by the percentage in the entity being transferred 
plus continuing liens multiplied by the percentage that represents the unrelated     or acquired.
person’s ownership interest in the grantee.                                          Line 24 – Enter the amount of any other debt or obligation of the entity multiplied 
Line 5 – If debt is recourse, enter line 3 or line 4, whichever is lower. If debt is by the percentage in the entity being transferred or acquired. Do not include the 
nonrecourse or if the grantee is a person unrelated to the mortgagee or lienor,      amount of any other debt or obligation of the entity included on line 23.
enter the amount from line 3. This is the amount of consideration to be entered      Line 25 – Enter any other amount paid by the grantee to the grantor for the 
onForm TP-584or TP-584-NYC,ScheduleB,Part1,line1.                                    conveyance.
Attach a copy of the referee’s report of sale, if available.                         Line 27 – Enter the apportionment of line 26 to the interest in real property 
Part 2                                                                               owned by the entity. The apportionment is determined by multiplying line 26 by 
Line 6 – If real property is being conveyed to a mortgagee or lienor, or its agent,  a fraction, the numerator of which is the fair market value of the real property 
nominee or an entity wholly owned by the mortgagee or lienor, in lieu of an action   locatedinNew YorkStatethatisownedbytheentityandthedenominatoristhe
                                                                                     fair market value of all assets owned by the entity.

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Page 4 TP-584.1 (7/19)
Line 28 – Enter the fair market value of the real property as of the date of b. Computation of Tax on Conveyance Less Credit
conveyance multiplied by the percentage in the entity being transferred or Consideration Paid by Y $500,000
acquired. Transfer Tax ($2 for each $500 of consideration) $2,000
Line 29 – Enter the amount from line 27 or line 28, whichever is less. This is Less credit for tax previously paid – 453
theamountofconsiderationtobeenteredonForm TP-584or TP-584-NYC, Total tax due on current conveyance $1,547
ScheduleB,Part1,line1. Enter the amount of consideration the grantor is not entitled to receive
Line 35 –
Schedule F after the conveyance. This amount is the present value of the remaining net
Tax Law section 1405(b)6 provides exemption from the real estate transfer tax to rental payments, included in the taxable consideration on the leasehold grant,
the extent a conveyance consists in whole or in part of a mere change of identity that will not be received as a result of the present conveyance.
orformofownershipororganizationwherethereisnochangeinbeneficial Line 36 – Enter the amount of the taxable consideration originally used in
interest. computing the tax on the leasehold grant.
To determine the consideration for the conveyance, multiply the fair market value Line 37 – Enter the percentage of credit to be applied to the tax on the
of the real property at the time of conveyance by the percentage of interest not conveyance of the real property by dividing line 35 by line 36. Round the
subject to the mere change exemption. percentage to four decimal places.
Generally, the fair market value of the real property is to be determined by Line 38 – Enter the amount of transfer tax paid by the grantor on the prior
appraisal. It is the amount a willing buyer would pay a willing seller for the real leasehold grant or on the granting of an option or contract to purchase all or a
property. It is not the net fair market value, which deducts mortgages on the portionofthesamerealproperty. AttachacopyoftheoriginalForm TP-584or
property from fair market value. TP-584-NYCfiledandproofofpayment.
When determining the taxable consideration, the consideration may be reduced Line 39 – Multiply line 37 by line 38. This is the amount of credit to be applied to
by the amount of continuing liens remaining on the property at the time of thetaxonthecurrentconveyance.EnterthisamountonForm TP-584,Schedule
conveyance multiplied by the percentage of interest not subject to the mere B,Part1,line5or TP-584-NYC,ScheduleB,Part1,line7.
changeexemption.PleaserefertoPage3ofForm TP-584-IorPage4of
TP-584-NYC-Iforadditionalinformationonthecontinuingliendeduction. Part 2
Example: B owns real property with a fair market value of $2 million. B conveys A credit will be allowed upon the original conveyances of shares of stock in a
the property to a partnership in exchange for a 30% interest in the partnership’s cooperative housing corporation in connection with the grant or transfer of a
assets. Although B has conveyed all of the real property to a partnership, he is proprietary leasehold by the cooperative corporation or cooperative plan sponsor,
entitled to a mere change exemption from the tax to the extent of his interest providedthefirstconveyanceofsharesofstocktakesplacewithin24months
in the partnership. The consideration for the conveyance will be deemed to be from the conveyance of the real property to the cooperative housing corporation.
$1,400,000 ($2,000,000 multiplied by the interest not subject to the mere change The credit is limited to the proportionate part of the tax paid when the real
exemption). property was conveyed to the cooperative housing corporation, to the extent that
the conveyance would have otherwise resulted in a mere change of identity or
Line 30 – Enter the fair market value of the real property at the time of the formofownershipofthepropertywithnochangeinbeneficialownership.
conveyance. Attach evidence to support the fair market value. The credit is determined by multiplying the amount of tax paid upon the
Line 31 –Enterthepercentagethatrepresentsthechangeinbeneficial conveyance of the real property to the cooperative housing corporation by the
ownership. Round the percentage to four decimal places. percentage that represents the extent to which the conveyance would have
Line 32 – Multiply line 30 by line 31. This is the consideration for the conveyance. resulted in a mere change of identity. The resulting product is then multiplied by
EnterthisamountonForm TP-584or TP-584-NYC,ScheduleB,Part1,line1. a fraction. The numerator is the number of shares of stock conveyed when the
proprietary leasehold was granted or transferred; the denominator is the total
Line 33 – Enter the proportionate amount, if any, of the continuing lien number of shares of stock of the cooperative housing corporation. In no event will
deduction. The proportionate amount of continuing liens means the amount of the credit reduce the tax on the conveyance below zero.
any continuing lien multiplied by the percentage not subject to the mere change
exemption.EnterthisamountonForm TP-584or TP-584-NYC,ScheduleB, Line 40 – Enter the number of shares allocated to the unit(s) for which
Part 1, line 2. A continuing lien is a mortgage or lien on the real property assumed proprietary leasehold(s) are being granted.
or taken subject to and not an acquisition mortgage or lien placed on the real Line 41 – Enter the total number of shares of stock in the cooperative housing
property by the grantee upon acquisition of the real property. See page 2 of corporation.
FormTP-584-Ior TP-584-NYC-Iforadditionalcriteriathatmustbemettoclaim Line 42 – Divide line 40 by line 41. Round the percentage to four decimal places.
the continuing lien deduction. This is the percentage of credit to be applied to the tax paid on the conveyance
Line 34 – Subtract line 33 from line 32. This is the taxable consideration. Enter to the cooperative housing corporation.
thisamountonForm TP-584or TP-584-NYC,ScheduleB,Part1,line3. Line 43 – Enter the amount of transfer tax paid on the conveyance of the real
Schedule G, Part 1 propertytothecooperativehousingcorporation. Attachacopyoftheoriginal TP-
A grantor will be allowed a credit against the real estate transfer tax on the 584filedandproofofpayment.
conveyance of real property, but only to the extent that the tax was paid by the Line 44 – Enterthepercentageofinterestthatwouldhavequalifiedasamere
grantor on a prior leasehold grant of all or a portion of the same real property or change when the real property was conveyed to the cooperative housing
on the granting of an option or contract to purchase all or a portion of the same corporation. See the instructions for completing Schedule F (this form) for
real property, by the grantor. information on a conveyance that would qualify as a mere change of identity.
The credit is computed by multiplying the tax paid on the leasehold grant or the Round the percentage to four decimal places.
granting of the option or contract to purchase by a fraction. The numerator of the Line 45 – Multiply line 43 by line 44. This is the proportionate amount of the
fraction is the value of the consideration used to compute the tax previously paid tax paid on the conveyance of the real property to the cooperative housing
that the grantor will not be entitled to receive after the conveyance of the real corporationthatwouldhaveotherwisequalifiedasamerechange.
property. The denominator is the total value of the consideration used to compute Line 46 – Multiply line 42 by line 45. This is the amount of credit to be applied
the tax previously paid. to the tax due on the conveyance of the unit(s) for which the proprietary
Example: Z enters into a lease with Y for a term of 5 years with an option to leasehold(s)isbeinggranted.EnterthisamountonForm TP-584,ScheduleB,
purchase the real property in any year throughout the term of the lease. The Part1,line5or TP-584-NYC,ScheduleB,Part1,line7.
annual rent for the term of the lease is $50,000. Since this conveyance consists Example: Taxpayer A conveyed a 100-unit apartment building to a cooperative
of an option conveyed with use and occupancy, the present value of the rental housing corporation (CHC) on January 1, for a consideration of $5 million and
payments for the term of the lease is subject to transfer tax. paid transfer tax of $20,000 ($2 for each $500 of consideration). Taxpayer A
For purposes of this illustration, assume the taxable consideration for the receives 1,000 shares from the CHC (10 shares allocated to each unit).
conveyance is $189,540. On February 1, Taxpayer A conveys Unit 1A to Taxpayer B for $100,000.
Therefore, at a rate of $2 for each $500, or fractional part of the taxable The credit is computed as follows:
consideration, the transfer tax on the leasehold grant is $760.
32. Number of shares allocated to the unit conveyed 10
In the second year, Y exercises the option to purchase the real property for 33. Total number of shares of stock in CHC 1,000
$500,000. The present value of the consideration for the three remaining years of 34. Percentage of credit to be applied .0100
the lease is $113,040. 35. Tax paid on conveyance to CHC $20,000
The applicable credit and tax on the conveyance of the property is computed as 36. Percentage of interest that would have qualified as a
follows: mere change to CHC 100%
a. Credit Computation 37. Proportionate amount of tax paid on conveyance $20,000
38. Amount of credit to be applied to tax on
Value of consideration Z conveyance of Unit 1A ($20,000 x .0100) $200
Transfer Tax Paid × is not entitled to receive = Amount of credit
Taxable consideration Information and assistance
$760 × $113,040 = $453 Ifyouneedhelp,call518-457-5181.
$189,530

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