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ericwvv, Home Owner in Cherry Hill, NJ

I had trans tax paid to NJ as an out of state resident yet I was later considered a NJ resident. How does impact my NJ tax return?

Asked by ericwvv, Cherry Hill, NJ Tue Oct 23, 2012

My ex wife and I lived in another state and owned two investment properties in NJ. We separated in 2008 and I moved into one property in May 2008 as my residence. We sold the other property in December of 2008 and had the 2% of the sale price reserved for the state as I would guess transfer tax for out of state residents. We divorced officially in 2009. I am just now filing my return for that year and would like to know if I can use the monies that we paid for the tax as out of state residents (even though I was a resident at the point of sale) against the money that I will owe as capital gains when my taxes are filed. I am confused with the exit tax, transfer tax and capital gains tax relationship. Thanks

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Debra (Debbie) Rose’s answer
yes, Andrew - he means the realty transfer tax/fee........that , imo, really isn't in dispute - the other tax he paid, however, the "exit" tax, may be questionable as to how it factors in with Eric's residence and whether he (and his ex) are due any credits............ that's what requires professional advice.
0 votes Thank Flag Link Wed Oct 24, 2012
When you say transfer tax, do you mean transfer fee tax? your attorney who closed the deal for you might be able to help you with this as well.
0 votes Thank Flag Link Wed Oct 24, 2012
Eric,

The best thing to do is to explain the situation to your accountant, her or she will know what the correct approach is.Thats why you pay them.If you dont have an accountant, ask a friends accountant.

Augie
0 votes Thank Flag Link Tue Oct 23, 2012
As much as I, and other agents I am sure, would like to help, this question really needs to be answered by either a real estate attorney and/or your cpa -

In addition - since you're asking about a possible credit due you for the exit tax - keep in mind your ex may be entitled to part of that, as well........you really need an expert to break this down for you.

Best wishes...........

ps - the good news is..........at least you're in a position to have a capital gain (ok, so the down side is you will owe capital gains TAXES!)

:)
0 votes Thank Flag Link Tue Oct 23, 2012
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