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07-29-2007, 09:57 AM
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4 posts, read 25,748 times
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Tax for sale of NJ home to relocate?
Is there a tax for sale of home in NJ due if you are relocating to another state? People are saying that before McGreevey left he put a 20% tax in effect if you sell your property to relocate to another state.
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07-29-2007, 10:14 AM
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7,081 posts, read 18,996,390 times
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Yes, there IS a tax. Why would there not be?
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07-29-2007, 11:18 AM
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161 posts, read 367,478 times
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No. There is no "exit tax" penalizing you if you move out of state. There is a transfer tax which both the buyer and seller pay. There are tax implications depending on whether or not you are exempt from capital gains, and whether or not the home you sell is your primary or secondary home.
It was discussed at length here:
NJ Exit Tax?
NJ is not the only state with a transfer tax. Those who are fleeing en masse to NC should be aware that some counties here are also instituting a transfer tax on real estate. |
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07-29-2007, 01:43 PM
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4,874 posts, read 9,432,837 times
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actually there is a tax if you sell your home and move out of state. i dont remember the percentage now, but it happens only if your home sells for
$500k or more...
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07-29-2007, 03:11 PM
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3,555 posts, read 5,021,947 times
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Realty Transfer Fee
Quote:
Originally Posted by findinghope
actually there is a tax if you sell your home and move out of state. i dont remember the percentage now, but it happens only if your home sells for
$500k or more...
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There is a realty transfer fee which both buyer and seller have to pay (many states also have this fee). It is not an exit tax. If you worked in NJ and file a tax return that year even though you move to another state, you will not have to pay the "exit" tax. I have no knowledge of the $500K additional tax. You might be referring to the tax you have to pay on capital gains if you have not lived in the house for more than a specific number of year. There is an exemption for $500K, married, if you lived in the house for I believe two years. |
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07-29-2007, 03:55 PM
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161 posts, read 367,478 times
Reputation: 81
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Quote:
Originally Posted by findinghope
actually there is a tax if you sell your home and move out of state. i dont remember the percentage now, but it happens only if your home sells for
$500k or more...
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You are talking about capital gains. If you live in your home for less than two of the five years before you sell, and if your profit on the sale is greater than $500K (married) or $250K (single), then yes you are taxed. That has absolutely zero to do with moving out of state. You could move into a house down the street and you would still have to pay that tax!
Different rules apply for investment properties and second homes.
The amount taxed is on profit, not selling price. |
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07-29-2007, 04:05 PM
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4 posts, read 25,748 times
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OK-I understand there is tax to pay--but I was told over and above the norm if you move out of state.
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07-29-2007, 04:08 PM
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161 posts, read 367,478 times
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Quote:
Originally Posted by not a jersey girl
OK-I understand there is tax to pay--but I was told over and above the norm if you move out of state.
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I sold my home and moved out of state last year, and did not pay any extra taxes to do it. I am actually moving back into the state, and don't expect to pay a tax for my return either... unless of course NJ has set up some sort of border patrol since I left!  |
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07-29-2007, 04:09 PM
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4 posts, read 25,748 times
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Thank you for your response. I am planning to move to NC can you tell me is Randolph County one of those counties.
Thanks again
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07-29-2007, 04:17 PM
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3,555 posts, read 5,021,947 times
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State of NJ Realty Transfer Fee
Quote:
Originally Posted by not a jersey girl
Is there a tax for sale of home in NJ due if you are relocating to another state? People are saying that before McGreevey left he put a 20% tax in effect if you sell your property to relocate to another state.
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Here is link which should give your all the details
NJ Div. of Taxation - NJ Realty Transfer Fees FAQs (http://www.state.nj.us/treasury/taxation/lpt/rtffaqs.htm - broken link) |
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