Schedule CT-1040 REC: Real Estate Conveyance Tax Credit Schedule (2025)
Connecticut · Connecticut DRS · Used for tax years 2025
Schedule CT-1040 REC calculates the Real Estate Conveyance Tax Credit that Connecticut resident taxpayers may claim against their 2025 Connecticut income tax liability. It reports property conveyance information, calculates the allowable credit, and identifies any credit eligible
Who files this form
Connecticut resident taxpayers filing the 2025 Form CT-1040 use this schedule to calculate the Real Estate Conveyance Tax Credit for 2025.
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 the credit. Taxpayers claiming it must attach a copy of this schedule to their return.
What you'll need
Have these forms and details available to complete the schedule:
- Form OP-236, Connecticut Real Estate Conveyance Tax Return: Line 16c provides the consideration amount used in the credit calculation.
- 2025 Form CT-1040: You need the Connecticut income tax liability from Line 10.
- Schedule CT-IT Credit, Income Tax Credit Summary: You will enter the credit and carryforward amounts on this schedule.
- The property's address and conveyance date.
- The amount of property tax paid to a Connecticut municipality in 2025.
- Your name, Social Security number, and mailing address, plus your spouse's name and Social Security number if filing jointly.
How to file
Complete Schedule CT-1040 REC and attach a copy to your 2025 Form CT-1040 when sending your return to the Connecticut Department of Revenue Services (DRS).
Enter the credit from Line 7 in column D of Line 7, Part 1, of Schedule CT-IT Credit. Enter the carryforward from Line 8 in column E of the same line.
Sign and date the schedule. The form also provides a spouse's signature line for a joint return. Keep a copy for your records.
Common mistakes
- Leaving out the schedule: Taxpayers claiming the credit must attach a copy to their return. The form reminds taxpayers to follow the completion and submission instructions to prevent processing delays.
- Not keeping a copy: The form reminds you to keep a copy for your records.
Questions people ask
How is the maximum credit for 2025 calculated?
On Line 3, multiply the portion of the residential dwelling's consideration that exceeds $2,500,000 by 1% (0.01). The form identifies Form OP-236, Line 16c, as the source of this consideration amount. Then multiply Line 3 by 33.3% and enter the result on Line 4.
How much credit can I claim for 2025?
Line 7 is the smallest of three amounts: the maximum credit on Line 4, the property tax paid to a Connecticut municipality in 2025 on Line 5, or your 2025 Connecticut income tax liability on Line 6.
What if I paid no property tax to a Connecticut municipality in 2025?
Enter zero on Line 5. Because Line 7 must be the smallest of Lines 4, 5, and 6, the credit eligible to be claimed on Line 7 is zero.
Can any credit be carried forward to 2026?
Line 8 is Line 4 minus Line 7. The form identifies this as the amount eligible to be carried forward to taxable year 2026. Enter it in column E of Line 7, Part 1, of Schedule CT-IT Credit.