DTF-626: Recapture of Low-Income Housing Credit (2024)
New York · NY DTF · Used for tax years 2024
Form DTF-626 calculates the recapture of New York's low-income housing credit for a building. It reports the recapture amount, interest, recapture tax, and any remaining credit carryover, and is submitted with a New York State franchise tax return or personal income tax return.
Who files this form
Form DTF-626 is used to report recapture of the New York low-income housing credit. Complete a separate form for each building to which recapture applies.
The form also covers recapture passed through from a partnership, New York S corporation, estate, or trust. If your recapture is passed through from one of these entities, skip lines 1 through 7 and start at line 8.
What you'll need
Have these forms and details available, as applicable:
- Your name and taxpayer identification number as shown on your return.
- Form DTF-625 for the building’s address and date placed in service, plus the building identification number (BIN).
- Prior-year Forms DTF-624 showing credits reported for the building.
- Records of unused credit carryovers and any recapture amount passed through from an entity.
- Form DTF-625-ATT and the calculation in Form DTF-625-ATT-I, line 15, step 1, if needed for the Line 2 Worksheet.
- For a building financed wholly or partly with tax-exempt bonds: the issuer’s name, issue date, issue name, and CUSIP number.
The form directs you to Form DTF-626-I for help completing the calculations.
How to file
Submit Form DTF-626 with your New York State franchise tax return or personal income tax return. Complete a separate Form DTF-626 for each building to which recapture applies.
Enter the line 14 recapture tax on the appropriate line of the applicable form. If you file more than one Form DTF-626, add the line 14 amounts and report the total. Electing large partnerships are directed to the instructions.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Combining buildings on one form: Complete a separate Form DTF-626 for each building to which recapture applies.
- Starting passed-through recapture on line 1: Skip lines 1 through 7 and go to line 8 when recapture is passed through from a partnership, New York S corporation, estate, or trust.
- Entering amounts where the form says to leave a line blank: Leave line 10 blank if the result is less than zero. Leave lines 14 and 15 blank if their results are zero or less.
- Completing Part 3 unnecessarily: Only IRC section 42(j)(5) partnerships complete lines 16 and 17.
- Missing instructions for special calculations: The form directs you to the instructions if the building had prior recapture and before completing the Line 2 Worksheet.
Questions people ask
Can I report several buildings on one Form DTF-626?
No. Complete a separate form for each building to which recapture applies.
Where do I report recapture passed through from an entity?
Skip lines 1 through 7 and enter the recapture amount on line 8. This direction applies to recapture passed through from a partnership, New York S corporation, estate, or trust.
What information is required if the building has tax-exempt bond financing?
Enter the issuer’s name, date of issue, name of issue, and CUSIP number. The form also directs you to the instructions.
How is the credit carryover on line 15 calculated?
Subtract line 12 from line 13. If the result is zero or less, leave line 15 blank. The form also directs you to the instructions.
Who completes Part 3?
Only IRC section 42(j)(5) partnerships complete lines 16 and 17. Line 16 reports interest on the line 7 recapture amount, and line 17 adds lines 7 and 16.