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Old 08-09-2013, 07:14 AM
 
171 posts, read 196,511 times
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Question NJ Exit Tax... Paying to move?

Hi! Just heard of an EXIT Tax that must be paid if we sell a home in NJ & move out of state? What's the scoop? Can't seem to find reliable info online.

Thanks!
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Old 08-09-2013, 07:19 AM
 
Location: NJ
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Quote:
Originally Posted by merriweather View Post
Hi! Just heard of an EXIT Tax that must be paid if we sell a home in NJ & move out of state? What's the scoop? Can't seem to find reliable info online.

Thanks!
Search this forum. UNTRUE.
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Old 08-09-2013, 07:25 AM
 
Location: NJ
17,580 posts, read 19,413,481 times
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Not true. In certain circumstances when you sell your home you will owe some taxes. If you are moving out of state they collect them up front. If you are moving within NJ they collect them when you file your taxes. Simple as that.
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Old 08-09-2013, 07:27 AM
 
Location: Edgewater nj
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Quote:
Originally Posted by merriweather View Post
Hi! Just heard of an EXIT Tax that must be paid if we sell a home in NJ & move out of state? What's the scoop? Can't seem to find reliable info online.

Thanks!
A friend had a portion of the sales proceeds withhold by the State when he sold his place and move back to Manhattan even though he lost money on the sale. I think he is still waiting to get it back a year later. I am not sure if this is what you mean by "exit tax" ...
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Old 08-09-2013, 08:09 AM
 
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Quote:
Originally Posted by balancesheet View Post
A friend had a portion of the sales proceeds withhold by the State when he sold his place and move back to Manhattan even though he lost money on the sale. I think he is still waiting to get it back a year later. I am not sure if this is what you mean by "exit tax" ...
In this case, then the tax payer will never get any money back. In NJ, they categorize incomes. Wage, capital gain, real estate, etc, are all different income. You cannot transfer loss from one category to another. For example, you make 10k in wage, but you have 3k in capital loss, you still have 10k in taxable income as oppose as 7k in federal level.
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Old 08-09-2013, 08:10 AM
 
171 posts, read 196,511 times
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Quote:
Originally Posted by balancesheet View Post
A friend had a portion of the sales proceeds withhold by the State when he sold his place and move back to Manhattan even though he lost money on the sale. I think he is still waiting to get it back a year later. I am not sure if this is what you mean by "exit tax" ...
I'm not sure either I've searched this forum & now know the what the Transfer Tax is (Thanks!) ... But what I'm trying to determine now is how to calculate HOW MUCH will I would need to pay NJ at closing so that I can determine how much profit (or loss ) when home is sold.
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Old 08-09-2013, 08:56 AM
 
Location: NJ
17,580 posts, read 19,413,481 times
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Quote:
Originally Posted by merriweather View Post
I'm not sure either I've searched this forum & now know the what the Transfer Tax is (Thanks!) ... But what I'm trying to determine now is how to calculate HOW MUCH will I would need to pay NJ at closing so that I can determine how much profit (or loss ) when home is sold.
This may be useful.

Biz Brain: 'Exit tax' before retiring, selling house | NJ.com
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Old 08-09-2013, 09:26 AM
 
Location: West Orange, NJ
11,674 posts, read 8,437,349 times
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Quote:
Originally Posted by merriweather View Post
Hi! Just heard of an EXIT Tax that must be paid if we sell a home in NJ & move out of state? What's the scoop? Can't seem to find reliable info online.

Thanks!
there is a tax if you sell your home within 2 years of buying, i believe. it's not an exit tax, it's to discourage flipping. i think it's 2%, but i have to ask a friend to confirm (or one of the realtors on here can chime in)
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Old 08-09-2013, 03:54 PM
 
434 posts, read 475,852 times
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It's not an exit tax, unless you live in say, Pennsylvania, and own a 2nd house in NJ, say down the shore for example. Then you pay an exit tax. A NJ person living in the state will pay a transfer tax when they sell, and I think that is regardless if you are moving out of state or will remain in the state. On a $500,000 house, it's about $5000. There is a link, but I can't seem to find it right now.

Bear in mind that if you are 62 years of age or older, that $5000 gets discounted by 50%. If you are real close to 62, then try to hold out till you have that birthday!
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Old 08-09-2013, 06:14 PM
 
1,330 posts, read 690,040 times
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Quote:
Originally Posted by suzsaz View Post
It's not an exit tax, unless you live in say, Pennsylvania, and own a 2nd house in NJ, say down the shore for example. Then you pay an exit tax. A NJ person living in the state will pay a transfer tax when they sell, and I think that is regardless if you are moving out of state or will remain in the state. On a $500,000 house, it's about $5000. There is a link, but I can't seem to find it right now.

Bear in mind that if you are 62 years of age or older, that $5000 gets discounted by 50%. If you are real close to 62, then try to hold out till you have that birthday!
Sounds right. We just paid 4.5 k after the sale of our house this month. Don't have all the closing numbers in front of me though. Exit tax, transfer tax.....all a tax to me although we could have been socked with 2 percent if we had not been residents.
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