Apt owner, Home Buyer in South Brunswick, NJ

Moving from NYC to South brunswick /monroe and already own apartment.

Asked by Apt owner, South Brunswick, NJ Mon Jan 28, 2013

We are moving from NYC to monroe /South brunswick and currently we own Apartment and it's our primary residence. So before we buy property in Monroe/ South brunswick which we will use this as our primary residence then do we have to sell the apartment before we buy house ? I heard that we may get charged the out of state residence tax since we already have apartment? We are not going to rent the apartment but we may go for new home construction or may be 4-5 year old house so want to know the details before doing any kind of contract either with new home builder or existing single family home.

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Dear Apt Owner,

If you need downpayment funds for buying a new place and If you have equity in the apartment you sell, you should consider selling your apartment first.
However, If you decide to keep your apartment and buy another home, you must be qualified for both houses.
If you have your current home for sale, you can certainly use the "sale contingency" which means that you will not purchase the new or existing home until your home is sold. However, Please note that most of the home builder or existing sellers do not like the idea of "sale contingency".

I do lots of business in South Brunswick and Monroe area. Should you have any questions, Please contact me at my Cell # 732-277-9321.

Vishal
0 votes Thank Flag Link Thu Feb 7, 2013
Great answer below about taxes. The only reason you would have to sell your apartment first, is if you need the proceeds from the sale to buy your next home. It's called a "sale contingency," and many sellers frown upon this because the sale of your property can go bad, then you can't buy their home, and usually they have a contract on THEIR new home...and it becomes a domino effect of canceled sales. It's always better to at least have the house/apartment on the market if you need the money for a down payment on your next home, IF you want to sell it.

If you are interested in looking in South Brunswick, feel free to give me a call so we can discuss your requirements in detail, with no obligation, and we can see what's available that meets those needs. 908-675-0167
0 votes Thank Flag Link Tue Jan 29, 2013
Dear Apt owner:

This is a very popular question.

The basic answer is that you will not be “double-taxed”. You will receive a credit on the NJ return for the state income tax you pay to NY on your wages. However, as with anything involving taxes, it ain’t quite that simple.

If you live in one state (New Jersey) and work in another (New York) you must first pay state income tax to the state in which you work (New York) on the wages earned in that state. The non-resident state (New York) will not directly (see below) tax you on your other income (i.e. NJ wages and self-employment earnings, interest, dividends, capital gains, etc.).

The state where you live (New Jersey) will tax you on all of your taxable income from all sources, including wages earned in another state (New York). Your resident state (New Jersey) will allow you to claim a credit for any non-resident state income tax paid to another state (New York) on income taxed by both states.

You will have New York state income tax withheld from his wages. NJ tax will probably not be withheld.

You will also most likely have to file a New York State Form IT-203 – Nonresident and Part Year Resident Income Tax Return. Hopefully this is not too confusing and helps you out. Good luck and if you need any help purchasing in the Monroe or South Brunswick area, I would be very happy to assist you. My contact information can be found under my profile. Have a good evening.
0 votes Thank Flag Link Mon Jan 28, 2013
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