Selling and Moving Out of State Questions

Hoping someone who has sold in Essex County and moved out of state can help answer a couple of questions.  


1)  Did you have to pay an Exit Tax to the State of NJ?  If so, do you know what numbers they used to calculate the tax? 


2)  How much was the County Transfer Tax/fee?  


3)  Are there any other taxes and/or fees associated with selling and leaving the state? 


4)  Anything else one needs to be aware of?


Thanks,


Eric



Exit tax??????  That sounds horrible!


Have not left the state yet - here is a link from NJMoneyHelp - 

“The exit tax is not an additional tax, a special tax or even a new tax, but merely a prepayment of the tax owed on the sale of real property by non-residents,” Fusillo said. “In fact, it is an estimated tax payment and was enacted in order to prevent non-residents from evading tax on the sale of second homes or investment properties.”

Your in-laws, from what you’ve indicated, are residents of New Jersey up until the day they move out, Fusillo said, so they will not be subject to the 2 percent exit tax prepayment.

Additionally, they won’t have to make a regular estimated tax payment for their sale, she said, because there will not be any realized gain.

“Finally, I do want to point out that they will file their 2019 New Jersey tax return on a NJ-1040, not on a non-resident return,” she said. “The NJ-1040 has an area where taxpayers indicate their dates of residence in the state and report income accordingly.”

Email your questions to Ask@NJMoneyHelp.com.




Thank you.  Every now and then I hear this come up and I am never sure if it is correct.


The article I read a few years ago was stating you would have to pay a certain percentage on the gain, or the total sales price, whichever is 

greater.  It didn't mention the part about being a resident of the state. 


Your article is a little more clear on the subject.


Eric


yes - it is confusing - I checked out the # 2 County tax - also not clear since it depends on the sale price https://www.state.nj.us/treasury/taxation/lpt/rtffaqs.shtml


Good luck to you and your family - Maplewood is losing a stellar guy! 


Thank you SP.  We just put the house back on the market Friday so we have some time yet.  


It is killing me to leave Maplewood but we can no longer afford to stay in town.  


We will be moving to Maryland once we sell.  My oldest son is a cop down there and my wife's sister also lives in the same area.  


There is no "exit tax" when you move from N.J.  From my understanding you will be taxed on the gains that you received after the sale of your home.  The cost of any improvements that we're done to the home are deducted from the gross sale price.  Also your age is a factor as well as how long you have owned the home.  


Todd from South Carolina.


When we moved out of NJ in 2006, iirc, tax on the sale of the house was withheld in the closing.  However, we got the money back when we filed our 2006 NJ tax return because the gain on the sale was not taxable (personal residence, held long enough, etc.).  Don't know how they're handling it now.



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