Schedule CT-1040 REC: Real Estate Conveyance Tax Credit Schedule (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Schedule CT-1040 REC calculates the Real Estate Conveyance Tax Credit for Connecticut residents filing Form CT-1040 for 2024. It reports property conveyance information, the credit eligible to be claimed, and any credit eligible to be carried forward to 2025.
Who files this form
Connecticut residents filing the 2024 Form CT-1040 use this schedule to calculate the Real Estate Conveyance Tax Credit they may claim against their 2024 Connecticut income tax liability.
The form says certain taxpayers who paid real estate conveyance tax at the 2.25% rate prescribed in Conn. Gen. Stat. § 12-494(b)(2)(C) may claim this credit. If you claim the credit, you must attach a copy of this schedule to your return.
What you'll need
Have these forms and details available to complete the schedule:
- Your 2024 Form CT-1040, including the Connecticut income tax liability on Line 10.
- Form OP-236, Connecticut Real Estate Conveyance Tax Return, for the property conveyance. This schedule uses the consideration amount reported on Line 16c.
- The property's address and conveyance date.
- The amount of property tax you paid to a Connecticut municipality in 2024.
- Schedule CT-IT Credit, Income Tax Credit Summary, where you report the credit and carryforward.
- Your name, SSN, and mailing address, plus your spouse's name and SSN if filing jointly.
How to file
Complete Schedule CT-1040 REC and attach a copy to your 2024 Form CT-1040 when sending your return to the Connecticut Department of Revenue Services (DRS).
- Enter the property address on Line 1 and the conveyance date on Line 2.
- On Line 3, multiply the portion of the residential dwelling's consideration that exceeds $2,500,000 by 1%.
- Multiply Line 3 by 33.3% and enter the result on Line 4.
- Enter your 2024 property tax paid to a Connecticut municipality on Line 5. Enter zero if none was paid.
- Enter your 2024 Form CT-1040, Line 10 income tax liability on Line 6.
- Enter the smallest of Lines 4, 5, and 6 on Line 7. Also enter it in Schedule CT-IT Credit, Part 1, Line 7, column D.
- Subtract Line 7 from Line 4 and enter the result on Line 8. Also enter it in Schedule CT-IT Credit, Part 1, Line 7, column E as the carryforward to taxable year 2025.
Sign and date the schedule. Your spouse must also sign if you file jointly. Keep a copy for your records.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Leaving out the schedule: Taxpayers claiming this credit must attach a copy to their return. The form reminds taxpayers to follow its completion and submission instructions to prevent processing delays.
- Not keeping a copy: The form instructs you to keep a copy for your records.
- Submitting false information: The declaration states that the return must be true, complete, and correct. Willfully delivering a false return or document to DRS can result in a fine of up to $5,000, imprisonment for up to five years, or both.
Questions people ask
How is the credit amount calculated for 2024?
Line 3 is 1% of the portion of the residential dwelling's consideration above $2,500,000. Line 4 is 33.3% of Line 3. The credit eligible to be claimed on Line 7 is the smallest of Line 4, your 2024 property tax paid to a Connecticut municipality on Line 5, and your 2024 Connecticut income tax liability on Line 6.
What if I paid no property tax to a Connecticut municipality in 2024?
Enter zero on Line 5. Because Line 7 must be the smallest of Lines 4, 5, and 6, the credit eligible to be claimed is zero when Line 5 is zero.
Can an amount be carried forward to 2025?
Yes. Line 8 is Line 4 minus Line 7. The form identifies this as the amount eligible to be carried forward to taxable year 2025. Enter it in Schedule CT-IT Credit, Part 1, Line 7, column E.
Can I authorize DRS to contact someone else about this return?
Yes. Complete the Third Party Designee section with the person's name, telephone number, and personal identification number (PIN).