Instructions for Form IT-242 Claim for Conservation Easement Tax Credit - New York

Form IT-242 Claim for Conservation Easement Tax Credit - New York

This document contains official instructions for Form IT-242 , Claim for Conservation Easement Tax Credit - a form released and collected by the New York State Department of Taxation and Finance. An up-to-date fillable Form IT-242 is available for download through this link.

FAQ

Q: What is Form IT-242?A: Form IT-242 is the form used in New York to claim a Conservation Easement Tax Credit.

Q: What is a Conservation Easement?A: A Conservation Easement is a legal agreement in which a property owner voluntarily restricts the development or use of their property to preserve its natural, scenic, or open-space features.

Q: Who can claim the Conservation Easement Tax Credit?A: Property owners in New York who have donated or sold a qualified conservation easement to a qualified organization.

Q: How much tax credit can be claimed?A: The tax credit amount is 25% of the appraised value of the donated easement, up to $5 million.

Q: What documentation is required to claim the tax credit?A: Documentation required includes a copy of the executed easement agreement, appraisal report, and other supporting documentation.

Q: When should Form IT-242 be filed?A: Form IT-242 should be filed within three years after the date the easement was donated or sold.

Q: Are there any additional requirements or considerations?A: Yes, there are additional requirements and considerations. It is recommended to consult the instructions for Form IT-242 or seek professional advice for detailed information.