Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Prommie-as a RE professional you better go back to school. We did not live out of state-we sold our primary/only residence in NJ of 34 yrs. and had to pay an "exit tax". As I stated previously it was less because my husband was 65. We did not pay capital gains as you only pay capital gains if you sell at a profit prior to being in home less than 2 years.
As said by one, nothing will change in N.J. because they keep electing the
same "stupid" mold of people.....They just never seem to get it...They had one shot at electing a "decent" governor Bret Schundler....and they elected
that idiot McGreevy instead and look what they got....another scandal and
another joke for Governor when he McGreevey had to step down...Don't get
me started on N.J. politics. If the people of N.J. don't wake up soon they will
be so over burndened by taxes that people will be working 24 hours a day to
survive....It's disgusting. they promised us more senior housing, better schools, lower taxes when gambling came into Atlantic city...Oh and they were going to rebuild the inner city.....yeah, right....anyone take a walk off
the boardwalk in AC? N.J. is corrupt and always will be....I'm glad I left. Oh
I go back for visits and get depressed. If you are a "yuppie" and can afford
these pricey homes downtown or condos in the waterfront..well good for you
but for the average family honestly, I don't know how they do it...we were
struggling 20 years ago and got out and went to Pa. at least for the money
we could breathe cleaner air...Good luck to anyone in N.J. until the next
election.
We just sold in March - on our closing paperwork it is listed as an Transfer Tax and I do believe it was about 1% of our selling price. And also back last year we sold a townhouse which was a rental property and we had the same tax listed on there. We also used an attorny both times.
Judog,
As was stated earlier in this thread, that was the realty transfer tax (oh, I mean fee - sounds so much better). It was not because you were moving out of state, it is levied to every real estate transaction. It is basically a sales tax.
Here is the page with the rate and how they are figured. Senior Citizens get a small break. NJ Div. of Taxation - NJ Realty Transfer Fees FAQs (http://www.state.nj.us/treasury/taxation/lpt/rtffaqs.htm - broken link)
The, so called, Exit Tax is basically like withholding or quarterly tax payments businesses' make. It is your estimated state income tax due on the capital gain. If you don't have that much tax, you will file for a refund. Only for non primary residences.
The third tax is the luxury tax levied on both buyer and seller for homes, boats, anything else over $1 million. Another sales tax, over the normal 7%.
I think all these points have been previously made earlier in the thread. If anyone still disagrees, I will email my attorney and let you know what she says.
The bottom line is the the state gets you. I paid over 5k in an exit tax. My lawyer said there was no choice. It stinks I had to pay it,but even as a life long resident of New Jersey (over 40years) I'm glad I left. The government is terrible, the taxes are out of hand,tuition in a state school is way over priced and even when my kids do graduate they can't afford to live anywhere around me. I'm glad I left.Eventhough North Carlolina is not the end all everybody thinks it is, it is affordable,and the people(except most of the relocated northerners) are nice
The bottom line is the the state gets you. I paid over 5k in an exit tax. My lawyer said there was no choice. It stinks I had to pay it,but even as a life long resident of New Jersey (over 40years) I'm glad I left. The government is terrible, the taxes are out of hand,tuition in a state school is way over priced and even when my kids do graduate they can't afford to live anywhere around me. I'm glad I left.Eventhough North Carlolina is not the end all everybody thinks it is, it is affordable,and the people(except most of the relocated northerners) are nice
I don't know where in NC you live, but if its in Wake Co., you can expect to pay the same transfer tax here! At least five counties in NC are planning to implement the transfer tax.
Ironic, isn't it? The taxes that everyone is fleeing NJ to escape are following them to NC!
I was told today by realtor that If you sell your house and move out of NJ you must now pay an Exit tax of 1% of the selling price. HUH? Anyone hear of this? This doesn't make sense. This is a so-called new law?
It's a Real Estate Transfer tax and I had to pay it last year. NJ also taxed me moving into the state 13 years earlier. I had to pay to leave also. I don't think any other states do this.
They get you coming and going!
So it sounds like you are saying the smart thing to do (and I realize this would be difficult for most folks) would be to sell the property, hang around in NJ long enough to file a return,,,then complete the move. Yes/No ??
We didn't get charged the extra because we closed the end of July so had to File a NJ return. We did pay the 1% transfer tax, but I think the new 2% was just added in 2007, and we moved in 2006.
Our paper in Nashville stated today how its growing here because of major companies relocating here to the Nashville Area. NJ is no longer experiencing the relocation market because of the tax structure being so high. I'm glad I'm gone.
Become a state worker -- you'll get tons of time off, great benefits, and can retire after 30 years of working with a pension and your health care paid for. My neighbors are in their early 50s and fish and golf every day. I go to the office and pay for their retirement, and will for the next 40 years or so (I'm in my early 30s).
I now live in Florida, but have deep roots in South Jersey.
Florida used to have an "Impact Tax" for people moving into the state, just the reverse of Jersey's "Exit Tax".
In Florida, the Constitutionality of this tax was challenged.
Guess what!
The State of Florida lost, and all taxes collected had to be returned to those who were impacted by the tax.
Perhaps some of those who were forced to pay that tax should challenge that tax too.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Bottom Line
