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Old 02-14-2009, 08:13 AM
 
Location: The Beautiful Pocono Mountains
5,450 posts, read 8,758,479 times
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Quote:
Originally Posted by wileynj View Post
It does not apply if you are staying in NJ. But be aware of the "realty transfer tax"... approx. 1% of the sold price and it's not tax deductible nor do you get it back
What in the world is that?????
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Old 02-14-2009, 09:43 AM
 
Location: Stewartsville, NJ
7,577 posts, read 22,598,166 times
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Quote:
Originally Posted by Jerseyt719 View Post
What in the world is that?????
It goes to your county..."Transfer fee"..not sure what it is..some kind of penaly for living in NJ..lol . Mine was close to, maybe a little over 5k
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Old 02-14-2009, 10:45 AM
 
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719 - here is a link to all you need to know. Go thru the top 10 posts and you'll get a lot of info:

//www.city-data.com/forum/searc...rchid=10856021
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Old 02-15-2009, 12:33 PM
 
Location: The Beautiful Pocono Mountains
5,450 posts, read 8,758,479 times
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Thanks, Older&Wiser,
I did go through them and it never really answered my question. Most got off topic pretty quick.
Is the realty transfer fee like a fixed amount/percentage of a sale? Is it in addition to sales tax?
Now I'm really wondering exactly how much I will pay out when we do sell?

This is really new news to me, and has me upset and confused....
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Old 02-15-2009, 04:05 PM
 
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The realty transfer fee/tax is computed according to a formula, which varies as the sales price gets higher. In general, it's +/- 1% of the sales price, if you want to budget for it. There is no "sales tax" when you sell real estate, so it's not "in addition to sales tax". Again, this fee/tax is paid whether you stay in NJ or not- there's no difference. The withholding that occurs if your forwarding address is outside of NJ is to cover potential capital gains on the sale, as I said earlier- I don't know if other states do this, but I haven't heard of any that do.
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Old 02-16-2009, 08:26 PM
 
234 posts, read 939,434 times
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Quote:
Originally Posted by wileynj View Post
It does not apply if you are staying in NJ. But be aware of the "realty transfer tax"... approx. 1% of the sold price and it's not tax deductible nor do you get it back
Actually, it is sort of tax deductible. You don't pay capital gains tax on the sale price, but only on the amount of money that you receive that is a capital gains profit. Since the transfer tax decreases the amount of money that you receive from the sale, that amount cannot be used to calculate any profit. So, it is deducted before the capital gains tax is calculated.
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Old 02-16-2009, 08:41 PM
 
234 posts, read 939,434 times
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Quote:
Originally Posted by Jerseyt719 View Post
Bob, is it just automatically taken from you at closing? What if you are selling and buying at the same time and it's in NJ? What if you sell and then don't buy right away? If you have an NJ address, do you just get the money at closing? ...
To clear this up -- the tax is due whether you are staying in NJ or leaving NJ. But, since they aren't as dumb as they look, they realize that if you move to another state, they might have a tough time getting that tax money out of you. So, all lawyers are required to ask for the seller's forwarding address at the time of the closing. If your forwarding address is in NJ, nothing is withheld. If your forwarding address is in another state, then the lawyers are required by the State of NJ to hold back a percentage of the sale price, which they send to NJ. Thus, it is pretty much like the withholding tax that comes out of your paycheck every payday. If you are going to stay in NJ, you still have to report the sale on your State income tax, and then you still pay any tax that is owed on the capital gains. If you move outside of NJ, then you have to still file a NJ tax return the following spring and if there is no tax due, you will get a refund check.

Or, you could (like someone else already said) tell the State that you are going to live with some relative who is a NJ resident. Then the tax money won't be withheld. Of course, then you still have to report it from the safety of your new state, and pay any tax that may be due.

And, I'm sure that you wouldn't forget to do that if you were living in another state, right?
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Old 02-17-2009, 06:08 AM
 
Location: The Beautiful Pocono Mountains
5,450 posts, read 8,758,479 times
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No, I wouldn't forget to report anything. I've been audited before and it was pretty frustrating.

I would love to know why they take anything for some "realty transfer fee". Don't we pay enough already???????
I didn't know that you don't pay sales tax on real estate. Hmm, just assumed you did.... I guess that's some bright light in the real estate tunnel.
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Old 02-17-2009, 06:15 AM
 
9,124 posts, read 36,369,826 times
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Quote:
Originally Posted by Jerseyt719 View Post
No, I wouldn't forget to report anything. I've been audited before and it was pretty frustrating.

I would love to know why they take anything for some "realty transfer fee". Don't we pay enough already???????
I didn't know that you don't pay sales tax on real estate. Hmm, just assumed you did.... I guess that's some bright light in the real estate tunnel.
This isn't an NJ-specific fee- many states charge such a fee- it probably just hurts more in NJ since you're already getting raped with taxes/cost of living on a daily basis.....
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