Reviewed September 19, 2026 against the official 2026 form and instructions.
Overview
IT-2663 concerns estimated income tax on a property sale. Inheriting a Brooklyn home does not automatically make this form necessary. This guide covers 2026 conveyances; use the form for the year of transfer.
Who must file?
Check whether the actual seller is a nonresident individual, estate or trust and whether an exemption applies. Do not determine an estate’s tax residency from the executor’s address alone. Ask the tax preparer to confirm the seller’s classification.
New York residents are outside this nonresident estimated-payment requirement. IT-2664 is for certain nonresident cooperative-unit transfers; it is not a substitute form for resident sellers.
Inherited property basis
Inherited basis is generally the date-of-death fair market value, or an alternate valuation when properly elected. It can increase or decrease relative to the decedent’s cost. Confirm applicable exceptions and later adjustments with your preparer; retain valuation and expense records.
Use the 2026 worksheet
Complete the worksheet before Part 2. Worksheet line 15 is sale price less selling expenses; line 16 is adjusted basis; line 17 determines gain or loss. Line 18 identifies the applicable gain, including required allocations. Line 19 specifies 10.90% for 2026; line 20 calculates the estimated payment. This is not necessarily your final effective tax rate.
Illustration only: if line 18 is $8,000, multiplying by 0.109 gives an estimated payment of $872. This example assumes the gain and any allocations are already correctly determined. Do not assume every repair or closing expense is deductible.
When and where to submit
Submit the completed form and any required payment to the county recording officer when the deed is presented for recording. Do not mail IT-2663 to the Tax Department. Coordinate preparation with the closing attorney in advance; the official instructions do not prescribe a 15-business-day preclosing approval period.
Prepare the recording package
Confirm the applicable TP-584 or TP-584-NYC documentation with the closing team. Keep IT-2663-V attached, including when no estimated payment is due. Use a separate check or money order for a required payment, payable to NYS Income Tax. Follow the official instructions for signatures, multiple sellers and identification details.
Exemption versus zero payment
An exemption from filing differs from a filed form showing no estimated tax due. Review the official exemption list, including qualifying principal-residence transfers, and the appropriate Schedule D certification. A nonexempt seller with no gain may still need IT-2663, Part 3 and the voucher. Do not assume that a nominal price or an inherited home automatically qualifies for an exemption.
Installment sales and fiduciaries
For installment sales, the instructions distinguish total gain from the portion reported federally in 2026. Later-year estimated payments use IT-2105 or IT-2106 as applicable. Estates and trusts also have special rules: beneficiary distributions do not by themselves reduce the gain used for this estimate. Have your preparer apply both rules to the transaction.
Before signing
Check the seller and tax year, support the inherited basis, review exemptions and allocations, and reconcile the worksheet with the payment voucher. Keep copies for the income-tax return. Resolve unclear tax treatment before signing the certification.
Common questions
Can an overpayment be refunded? Any refund due is claimed through the applicable New York income-tax return, not before filing that return. The correct return depends on whether the taxpayer is an individual or a fiduciary.
Is IT-2663 the same as ET-117? No. ET-117 addresses an estate-tax lien on specified real property. The requirements are separate; neither form is automatically required for every estate sale.