TD-1000 Form Colorado: Real Property Transfer Declaration Guide

The deed is signed. The county recording fee is paid. Then the county assessor sends a penalty notice, and you realize you forgot to attach the TD-1000.

This is one of the most common and entirely avoidable mistakes Colorado executors make when transferring real estate out of an estate. The Real Property Transfer Declaration — commonly called the TD-1000 — is a mandatory disclosure form that must accompany every deed recorded in Colorado. Miss it, and you face immediate financial penalties. Fill it out incorrectly, and you could saddle the heirs with inflated property taxes for years.

What the TD-1000 Is and Why It Exists

The TD-1000 is a form administered by the Colorado Division of Property Taxation. It exists because the county assessor needs specific information to set an accurate property tax value whenever real estate changes hands.

When a deed is recorded — whether it's a personal representative's deed distributing inherited property to heirs, or a trustee's deed, or a warranty deed from an estate sale — the county assessor uses that transaction as a data point to assess the property's market value. Without the TD-1000, the assessor is working blind. That's why Colorado law makes the form mandatory for virtually every conveyance, not optional.

The form captures details the deed itself doesn't provide: whether the transaction was arm's length or between related parties, whether personal property (furniture, appliances) was included in the transfer price, the actual purchase price or fair market value, and details about financing. All of this shapes how the assessor determines the property's taxable value going forward.

The Two Penalties for Getting This Wrong

Penalty 1: The immediate fine. Under Colorado statute, failing to file the TD-1000 triggers a penalty of $25 or 0.025% of the total sale price — whichever is greater. For a $400,000 property, that's $100. It's not catastrophic, but it's entirely avoidable, and it comes with compliance notices that create additional administrative headaches during an already stressful estate administration.

Penalty 2: Inflated property taxes for years. This one matters far more. The form contains a critical section requiring the disclosure of any personal property included in the transfer — furniture, appliances, window treatments, yard equipment. If a house sells for $500,000 and $30,000 of that price reflects furnishings included in the deal, the real estate's true value is $470,000.

If you don't disclose the personal property on the TD-1000, the assessor taxes the full $500,000 as real estate value. The heirs who just inherited that property will pay higher property taxes on an inflated assessment — not for one year, but potentially for the entire assessment cycle until it's corrected. Correcting it afterward requires an abatement petition, which is its own procedural headache.

How to Complete the TD-1000 for an Estate Transfer

The form looks more intimidating than it is. Here's how each section typically applies in an estate context:

Part A — Transfer Information. Enter the property's legal description (found on the deed), the recording date, and the type of deed being recorded. For estate distributions to heirs, check the box indicating the transfer is not an arm's-length market transaction. This is important — it signals to the assessor that no open-market sale occurred, which affects how they interpret the reported value.

Part B — Sale Price or Consideration. For estate distributions where no money changes hands, report the fair market value of the property as of the date of transfer. This should match the appraised value you established during the estate inventory process. If the estate sold the property to a third-party buyer, report the actual sale price.

Part C — Personal Property. This is the most consequential section. List any personal property included in the transfer and assign it a value. Furnishings, appliances, riding mowers, storage sheds that aren't permanently affixed — anything that isn't structural real estate. Getting this right protects the heirs from over-assessment.

Part D — Financing. If the estate sold property and the buyer is financing through a conventional mortgage, provide the loan details. For estate distributions to heirs, this section typically doesn't apply.

Part E — Buyer and Seller Information. The "seller" is the estate, signed by the personal representative. Include the estate's Employer Identification Number (EIN), not the decedent's Social Security Number.

Where to File and Timing

The TD-1000 is filed with the county assessor's office in the county where the property is located — not the county where you filed probate. In Colorado, probate is filed in the county of the decedent's domicile, but real estate belongs to the county where it sits.

The form must be submitted at the same time the deed is recorded with the county clerk and recorder. Many county clerk's offices require the TD-1000 to be physically attached to the deed before they'll accept it for recording. Do not record the deed and submit the TD-1000 separately — submit them together.

The flat recording fee for a deed in Colorado is $43 per document, established by HB 24-1269. The TD-1000 itself carries no additional filing fee.

The Appraisal Requirement for Accurate Reporting

To complete the TD-1000 accurately, you need a defensible fair market value for the property as of the date of death. This isn't just a TD-1000 requirement — it's also essential for establishing the step-up in tax basis, which protects heirs from capital gains tax when they eventually sell the property.

A qualified real estate appraiser typically charges between $300 and $600 for a residential appraisal. This cost is a legitimate estate administration expense and can be paid from estate funds before distribution. The appraisal establishes:

• The value reported on the TD-1000
• The step-up in basis for federal and state income tax purposes
• The value reported on the estate inventory (JDF 941) if formal probate is open

If you're distributing a property worth significantly more than the decedent paid for it — common for Colorado Front Range and mountain properties — skipping the appraisal to save a few hundred dollars is a mistake that will cost the heirs far more in capital gains taxes when they sell.

When the TD-1000 Doesn't Apply

There are narrow exemptions. Properties transferred solely by operation of law (such as from one co-owner to another via a right-of-survivorship deed where no probate is involved) may not require the TD-1000, depending on county practice. But for any deed recorded through the probate process — a personal representative's deed, an estate trustee's deed, or a deed executed pursuant to court order — the TD-1000 is required.

If you're uncertain whether a specific transfer triggers the TD-1000 requirement, call the county assessor's office directly. Each county has a property transfer desk, and they can confirm what's required before you record.

Connecting the TD-1000 to the Broader Estate Tax Picture

The TD-1000 is one piece of the estate's real estate puzzle. When a Colorado executor distributes real property, the interconnected obligations are:

1. Obtain a fair market value appraisal (establishes basis and TD-1000 value)
2. Execute the personal representative's deed with proper court authority (Letters Testamentary)
3. Attach the TD-1000 and record the deed with the county clerk and recorder ($43 fee)
4. File the Colorado Fiduciary Income Tax Return (DR 0105) if the estate earned income during administration
5. Preserve records of the stepped-up basis for the heirs to use when they eventually sell

If the surviving spouse needs to preserve the senior property tax exemption, that's a separate application to the county assessor — the Long Form must be filed by July 15 to maintain the 50% exemption.

The Colorado Final Tax & Estate Tax Guide at /us/colorado/estate-tax/ walks through the complete real estate transfer process with step-by-step instructions, a TD-1000 walkthrough, and a creditor deadline calendar so nothing falls through the cracks.

One More Thing to Check Before You Record

Before finalizing any deed transfer out of the estate, confirm that no DR 2009 Designated Beneficiary form exists for the property. Wait — that form applies only to vehicles, not real estate. But the Colorado Beneficiary Deed (Transfer on Death Deed) operates similarly for real property: if the decedent recorded a beneficiary deed, the property may pass to the named beneficiary entirely outside probate, making a personal representative's deed unnecessary and potentially invalid.

Check whether a beneficiary deed was recorded with the county clerk before you proceed with any probate-based transfer. A title company or real estate attorney can pull the chain of title quickly.

The $43 recording fee and the TD-1000 requirement both apply regardless of whether probate was involved — any time a deed is recorded in Colorado, the form is required. There are no shortcuts.

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