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TP-584-REIT (7/14) (back)

(e) to acquire any interest in real property (including an

General information

ownership interest in any entity owning real property)

A conveyance of real property to a real estate investment trust

except an acquisition that would qualify for the reduced

(REIT), as defined in section 856 of the Internal Revenue Code,

rate of tax provided for a REIT transfer (without regard to

may be subject to the transfer tax at the reduced rate of $1 for

this requirement); or

each $500 or fractional part of consideration. The conveyance

(f) for reserves established for any of the purposes described

may be to the REIT itself or to an entity, such as a partnership

in items (a), (b), (c) or (d) above.

or a corporation, in which a REIT owns a controlling interest

immediately following the transfer (REIT transfer).

For purposes of this requirement, the term real property

includes real property owned directly or indirectly by the REIT,

To qualify for the reduced transfer tax rate, REIT transfers that

whether located inside or outside New York State. Also, the

are in connection with the initial formation of the REIT must

calculation of the net cash proceeds from the initial offering

occur on or after June 9, 1994. In addition, the REIT transfer

of the REIT is made without regard to any proceeds resulting

must also meet certain ownership retention requirements

from the exercise of any underwriter’s over-allotment option in

and the use of proceeds requirement described below. See

connection with the initial offering of the REIT shares.

TSB-M-94(4)R for the requirements for determining whether

a REIT transfer qualifies as being a transfer that occurs in

Payment of estimated personal income tax by

connection with the initial formation of the REIT.

individuals, estates, and trusts

In addition, REIT transfers other than those in connection

Nonresidents – Nonresident individuals, estates, and trusts

with the initial formation of the REIT qualify for the reduced

taxed under Article 22 of the Tax Law must comply with the

transfer tax rate if they occur on or after July 13, 1996, but

provisions of Tax Law section 663, estimating the personal

before September 1, 2017. Furthermore, in order to qualify for

income tax on the gain, if any, from the sale or transfer of certain

the reduced transfer tax rate, a REIT transfer must meet the

real property located in New York State. Such nonresident

ownership retention requirements described below.

individuals, estates, and trusts are required to either complete

Form IT-2663, Nonresident Real Property Estimated Income

Ownership retention requirements

Tax Payment Form, or Form TP-584, Schedule D, Certification

As part of the consideration for the conveyance of real property

of exemption from the payment of estimated personal income

or interest therein, the grantor(s) must receive ownership

tax, and file it with Form TP-584-REIT.

interests in the REIT or in an entity controlled or to be controlled

Residents – The requirement for payment of estimated

by the REIT which have at least a certain minimum value

personal income tax under Tax Law section 663 does not

as described herein. The value of those ownership interests

apply to individuals, estates, and trusts who are residents

received in the REIT or in an entity controlled or to be controlled

of New York State at the time of the sale or transfer.

by the REIT must be equal to at least 40% (50% if the

Resident individuals, estates, and trusts must complete

conveyance is other than in connection with the initial formation

Form TP-584, Schedule D, Certification of exemption from

of a REIT) of the equity value of the real property or interest

the payment of estimated personal income tax, and file it with

therein conveyed by the grantor(s) to the grantee. In addition,

Form TP-584-REIT.

the ownership interests in the REIT or in an entity controlled or

to be controlled by the REIT received by the grantor(s) as part

See Payment of estimated personal income tax, on page 1

of Form TP-584-I, Instructions for Form TP-584, for more

of the consideration for the conveyance must be retained by the

grantor(s) (or an owner of the grantor) for a period of at least

information.

two years from the date of the REIT transfer, except in the case

Specific instructions

of the subsequent conveyance of these interests as a result of

the death of an individual grantor. See TSB-M-94(4)R for the

method used to calculate the equity value of the property

Schedule A

and the value of the ownership interests received.

Condition of conveyance

Use of proceeds requirement

Indicate the condition of conveyance by checking all

the condition(s) that apply. If you check item d, attach

At least 75% of the net cash proceeds (after deducting

Form TP-584.1, Real Estate Transfer Tax Return Supplemental

underwriting discounts) received by the REIT from its initial

Schedules, to Form TP-584-REIT, with Schedule F completed.

offering must be used for the following purposes:

(a) to make payments on loans secured by any interest in the

Schedule B

real property owned directly or indirectly by the REIT;

Line 1 – Enter the consideration for the conveyance as set

(b) to pay for capital improvements to the real property owned

forth in section 1402(b)(3) of the Tax Law. See

directly or indirectly by the REIT;

TSB-M-94(4)R for more information on the

calculation of consideration and net cash flow

commissions and professional fees) incurred in connection

from operations.

with the creation of a leasehold or sublease pertaining to

the real property owned directly or indirectly by the REIT;

Line 2 – See Form TP-584-I, Instructions for Form TP-584,

page 3, for more information on the continuing lien

(d) to make payments to or on behalf of a tenant as an

deduction.

inducement to enter into a lease or sublease, including but

not limited to the following:

Line 3 – Enter the taxable consideration by subtracting

(i) a cash bonus paid to a tenant for signing a lease;

line 2 from line 1.

(ii) a payment for the unexpired term of a tenant’s previous

Line 4 – Compute and enter the amount of tax due based

lease;

on the consideration entered on line 3. The rate is $1

(iii) payment of a tenant’s moving costs;

for each $500, or fractional part thereof, of taxable

(iv) payment for a tenant’s improvements that do not

consideration on line 3.

constitute capital improvements (such as temporary

partitions or non-permanent electrical wiring for

Schedule C

computer equipment); and

Check the appropriate box on Schedule C, if this schedule is

(v) payment of a tenant’s attorneys’ fees;

required.

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

The undersigned certify that the above return, including any 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

Form Tp-584-Reit - Combined Real Estate Transfer Tax Return And Credit Line Mortgage Certificate For Real Estate Investment Trust Transfers Page 2

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