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Old 03-18-2014, 09:06 AM
 
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Saw information on line about an 'exit tax' when one sells their home in NJ then move out of state - there is a lot of information on google regarding this - all different stories - including the State of NJ site....Does anyone have PERSONAL INFORMATION that this tax was imposed on them when they moved out of NJ?? We plan to move in around 3-4 years - and I want to know how much I will be slammed at that time.
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Old 03-18-2014, 10:29 AM
 
Location: Mount Laurel
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Quote:
Originally Posted by missynancy View Post
Saw information on line about an 'exit tax' when one sells their home in NJ then move out of state - there is a lot of information on google regarding this - all different stories - including the State of NJ site....Does anyone have PERSONAL INFORMATION that this tax was imposed on them when they moved out of NJ?? We plan to move in around 3-4 years - and I want to know how much I will be slammed at that time.

Are you selling your primary residence? Do you think there is a $250K ($500K for couple) gain on the sale of your property? If no, you don't have to pay the estimated capital gain tax for NJ. People refer to it as exit tax because non resident of NJ were selling their NJ home and not pay the gain tax for NJ.
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Old 03-23-2014, 09:18 AM
 
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There is no such thing.
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Old 03-23-2014, 03:28 PM
 
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There is a transfer tax, which is based on the sale price. And there is also a non resident tax (if your forwarding address is not in NJ), which is approx. 2% of sales price.
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Old 03-24-2014, 07:52 AM
 
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If you sell your house for profit... more than the capital gains exception that sj08054 mentions above.. then that is taxable income, and since its earned on a NJ property, the taxes on that income go to NJ.

What was happening tho, is people would retire to Florida, sell their $800,000 North Jersey home that had no mortgage (after living in it 35 yrs), and since they were already in Florida... Jersey wouldnt get the income tax on the property. So now they want it at the settlement table so that they are guaranteed the tax dollars.

So apparently whatever is taken at settlement is squared up at the end of the year.

Last edited by bellmark; 03-24-2014 at 08:26 AM..
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Old 03-30-2014, 09:44 AM
 
Location: Southern, NJ
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Yes, we paid 2% transfer tax (aka exit tax) when we sold our home in Manahawkin in 2003 and relocated to NC. Our Realtor told us that it was the first year it was enacted in NJ since so many people were leaving the State.
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Old 03-30-2014, 10:07 AM
 
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If you filed a return and did not owe you get the funds back. It is an estimated or withholding of potential tax, It is not an "exit tax"

Your realtor was also incorrect the tax existed since 1976 it was just a more efficient method to make sure it was paid.
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Old 02-21-2015, 05:48 AM
 
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Yes I'm sorry to say there is an NJ Exit Tax.

And to think that we broke away from England for a penny tax.

WHAT SHEEP WE HAVE BECOME.



Tax Payment Policy
New Jersey's exit tax is a special tax payment policy, although it does not create any new tax liability. Instead, the New Jersey exit tax is a required estimated tax payment that resident and nonresident taxpayers who sell their homes in New Jersey to move out of state must pay. The amount of the exit tax is the standard state tax rate on the profit from a home sale.

Exit Tax Functionality
The purpose of New Jersey's exit tax is to ensure that residents and nonresidents who sell residential property in the state pay the appropriate tax on the profits, even if they move out of state before the end of the year and don't file a New Jersey state income tax return the following year. Since this tax is required by law, the exit tax simply requires the home sellers to pay it earlier than they otherwise would.



Read more : New Jersey Tax for Moving Out of State | eHow
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Old 02-22-2015, 06:58 AM
 
223 posts, read 300,534 times
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There is no such thing as an exit tax. Why did you dig up a year-old thread to spread misinformation? The 2% withholding is to ensure that nonresidents file a return to report gains or losses from the sale of their NJ homes. If there is a loss, they get the entire payment back if they file a nonresident tax return. Alternatively, the nonresident can file form A-3128 to get the refund sooner if they don't want to wait until filing season, but they still have to file a return at tax time to report the loss. If there is a gain, the payment is used to offset the tax liability created.
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