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IT-217-I (1997) Page 3

Example: You owned qualiﬁed agricultural

Part II - Computation of

If you continue to own the property after

property individually on March 1, 1997. You

the conversion to nonqualiﬁed use, and the

Credit

also are a 75% shareholder in a ‘‘C’’

converted property is included as part of

Line 1 - Enter the total acres of qualiﬁed

corporation that owned qualiﬁed

your total tax bill, you may allocate the

agricultural property owned by you (and

agricultural property on March 1, 1997. You

total taxes to the converted property on the

your spouse if ﬁling a joint return) during

and the corporation are related persons.

basis of the amount of acreage converted

1997. Be sure to include the number of

to the total acreage covered by the tax bill.

acres under buildings or structures that are

The following are also examples of related

qualiﬁed agricultural property.

persons:

If the converted property is sold, the

closing documents will show the amount of

- If an estate or trust (or the grantor of the

For ﬁling status

, Married ﬁling separate

school taxes reimbursed to you by the

trust) owns more than 50% of a C

return , enter only the total acres of

buyer. You must reduce your current year’s

corporation, or the corporation owns

qualiﬁed property owned by you during

eligible school taxes by the amount of

more than 50% of the estate or trust, the

1997. If you and your spouse owned the

these reimbursed taxes in determining the

estate or trust and the corporation are

qualiﬁed agricultural property jointly (such

credit.

related persons.

as joint tenants or tenants in common),

each spouse can claim only one-half of the

- If an estate or trust (or grantor of the

acreage amount unless you both agree to

trust) owns more than 50% of another

Line 15 - If line 15 is more than $100,000,

split the acreage in a different manner. If

estate or trust, the ﬁrst estate or trust and

your credit is limited.

you both agree, you may split the acreage

the second estate or trust are related

in any manner you wish.

persons.

Part III - Partnership, S

- If the same person owns more than 50%

Corporation and Estate or

If you checked the box at item F, do not

of a C corporation and more than 50% of

include on line 1 the acres of property

Trust Information

an estate or trust, the corporation and the

converted to nonqualiﬁed use.

estate or trust are related persons.

Enter the appropriate information for each

partnership, S corporation or estate or trust

- If the same person owns more than 50%

Line 5 - If you did not check box E in Part

that owned qualiﬁed agricultural property. If

of more than one estate or trust, the

I, enter 100 on line 5. If you did check box

you need more space, attach a separate

estates and trusts are related persons.

E in Part I, you must allocate the 100 base

schedule.

acres among yourself and the other related

Item F - You cannot claim the farmers’

parties. The base acres must be divided

school tax credit for qualiﬁed agricultural

equally between the parties unless you all

Part IV - Partner’s,

property which is converted to nonqualiﬁed

agree to a different division. If you all

Shareholder’s or Beneﬁciary’s

use during the tax year.

agree, you may divide the base acres in

Share of Qualiﬁed Agricultural

any manner you wish. If you elect an

Conversion to nonqualiﬁed use means an

unequal division, you must attach a

Property and Eligible Taxes

outward or afﬁrmative act changing the use

statement to Form IT-217, setting forth the

Enter your share of the acres of qualiﬁed

of agricultural land. The idling, nonuse or

following information:

agricultural property and eligible taxes from

sale of the land is not by itself a

– the name, address and taxpayer

a partnership, New York S corporation or

conversion.

identiﬁcation number of the related

estate or trust on the appropriate lines in

person(s) and

Example 1: You sell 100 acres of land

Part IV. Obtain your share of acres of

to a developer in 1997. The developer

– the amount of base acreage allocated to

qualiﬁed property and eligible taxes from

actually builds a housing development

you and the related person(s).

the partnership, corporation, or estate or

on the land during 1997, and as a result

trust. If you belong to more than one

the land is no longer used in agricultural

partnership, New York S corporation or

The statement must be signed by you, and

production. This is a conversion to

estate or trust, enter the total of all your

by the related person(s) or by any person

nonqualiﬁed use.

shares on the appropriate line.

who is duly authorized to act on behalf of

the related person(s).

Example 2: You discontinue farming

during 1997, but continue to hold the

Part V - Beneﬁciary’s and

farm property for investment purposes.

Line 10 - Enter the eligible school taxes

Fiduciary’s Share of Acres of

This is not a conversion to nonqualiﬁed

paid by you (and your spouse if ﬁling a

Qualiﬁed Property and

use.

joint return) in 1997.

Eligible Taxes

Example 3: You sell qualiﬁed

, Married ﬁling separate

For ﬁling status

agricultural property to another person

An estate or trust must complete Part V.

return , enter only the eligible taxes paid on

who continues to use the property in

Include in the total line both (1) the acres

qualiﬁed agricultural property owned by

agricultural production. This is not a

of qualiﬁed property owned by the estate

you. If you and your spouse owned the

conversion to nonqualiﬁed use.

or trust and the eligible taxes paid by the

qualiﬁed agricultural property jointly, you

estate or trust, and (2) the estate’s or

must divide the eligible taxes in the same

If all of your qualiﬁed agricultural property

trust’s share of each item from Part IV, line

manner as you divided the acres of

is converted to nonqualiﬁed use during the

7. If you checked the box at item F, do not

qualiﬁed property (see the instructions for

tax year, do not complete this form. You

include the acres of property converted or

line 1).

cannot claim the farmers’ school tax credit.

the taxes paid on that property. The total

If only part of your qualiﬁed agricultural

acres of qualiﬁed agricultural property and

property is converted to nonqualiﬁed use

If you checked the box at item F, do not

total eligible taxes are allocated between

include on line 10 the school taxes paid

the estate or trust and its beneﬁciaries on

during the tax year, you can claim credit for

the part of the property which is not

during the year on property that was

the same basis as the income of the estate

converted.

converted to nonqualiﬁed use.

or trust is allocated.

Instructions For Form It-217 - Claim For Farmers' School Tax Credit - New York State Department Of Taxation And Finance - 1997 Page 3

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