NJ Exit Tax... Paying to move?

[merriweather]

Originally Posted by manderly6

Commission has nothing to do with NJ. And if you don't have a gain and stay in NJ you don't pay the withholding.

Yes, I realize commissions are standard everywhere (and usually well-earned) but the point is that the ability to move out of state & options for future housing seem severely compromised if you are depending (like most long-term homeowners do) upon how much cash you leave the table with at closing.

[manderly6]

Originally Posted by merriweather

Yes, I realize commissions are standard everywhere (and usually well-earned) but the point is that the ability to move out of state & options for future housing seem severely compromised if you are depending (like most long-term homeowners do) upon how much cash you leave the table with at closing.

When you make a post and say "who can afford to sell in NJ" expect to get some "feedback" when you then go on to list things that people pay in every state and that people not leaving the state don't pay up front.

[merriweather]

Originally Posted by manderly6

When you make a post and say "who can afford to sell in NJ" expect to get some "feedback" when you then go on to list things that people pay in every state and that people not leaving the state don't pay up front.

Thanks for the feedback

[Ellwood]

Originally Posted by merriweather

I believe this a fee ADDITIONAL to the Withholding Tax explained by MaverickDD?

So we pay RE Agent commission, Realty Transfer Fee, the Withholding Tax, & goodness knows what else???

Who can afford to SELL a home in NJ???

Not sure about the Withholding Tax on real estate, but when we sold 5 years ago and moved out of state, we paid a RTF, which we were able to deduct on income tax. The purpose is to make sure that the non-resident individual files a Form NR-1040 to report the sale and pay tax on the gain. Because the required estimated Tax payment is made at the highest tax rate, the individual should receive and be entitled to a refund on the NJ-1040. We had already owned the out of state house for a couple of years before we sold the house in NJ. Possibly the Withholding Tax is recent, as I don't recall paying it.

[manderly6]

Here is some good information.

NJ Division of Taxation - FAQs on GIT Forms Requirements for Sale/Transfer of Real Property in New Jersey

One of the items covered:

Q: What is a resident taxpayer?
A: A resident taxpayer is one of the following:
An Individual who is and intends to continue to maintain a permanent place of abode (home, residence) in New Jersey on/after the day of transfer.
An Estate established under the laws of New Jersey as more fully defined in N.J.S.A. 54A:1-2(o).
A Trust established under the laws of New Jersey as more fully defined in N.J.S.A. 54A:1-2(o).
Q: What is a non-resident taxpayer?
A: A non-resident taxpayer is any taxpayer that does not meet the definition of a resident taxpayer.