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Old 02-13-2009, 06:10 AM
 
Location: The Beautiful Pocono Mountains
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Is there any way of getting around the exit tax in NJ? I think it's a scam tax as it is and would really love to not pay it should we decide to buy in another state. I think we pay enough to NJ now.

Anyone have any ideas? Or maybe know more about this and can enlighten me?
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Old 02-13-2009, 06:16 AM
 
Location: Stewartsville, NJ
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Quote:
Originally Posted by Jerseyt719 View Post
Is there any way of getting around the exit tax in NJ? I think it's a scam tax as it is and would really love to not pay it should we decide to buy in another state. I think we pay enough to NJ now.

Anyone have any ideas? Or maybe know more about this and can enlighten me?
There was a thread on this subject already...it's not a tax - it's a temporary hold on monies if you move out of State to make sure you don't owe anything..it gets returned! We're ya thinking about heading? Come on...just move out to Steweyville... BBQ's every weekend at Wiley's place
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Old 02-13-2009, 07:03 AM
 
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As Wiley said, this topic has been beaten to death- it's not an exit tax- it's simply a hold on possible capital gains taxes that you may owe, to make sure the state doesn't have to chase you across the country to get their money. There's two ways to "beat" it-

- List an NJ address as your forwarding address- maybe a relative's address (illegal, technically, but I'm sure plenty of people do it)

- Sell at a loss so you've got no capital gains for them to withhold taxes on
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Old 02-13-2009, 07:15 AM
 
Location: Stewartsville, NJ
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Quote:
Originally Posted by BobKovacs View Post
As Wiley said, this topic has been beaten to death- it's not an exit tax- it's simply a hold on possible capital gains taxes that you may owe, to make sure the state doesn't have to chase you across the country to get their money. There's two ways to "beat" it-

- List an NJ address as your forwarding address- maybe a relative's address (illegal, technically, but I'm sure plenty of people do it)

- Sell at a loss so you've got no capital gains for them to withhold taxes on
like us NJian's have a choice these days . Not too many out there that will gain over 500K - married couple, or 250K - single on a home sale purchase.
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Old 02-13-2009, 08:12 AM
 
Location: The Communist State of NJ
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Originally Posted by wileynj View Post
like us NJian's have a choice these days . Not too many out there that will gain over 500K - married couple, or 250K - single on a home sale purchase.
Tru dat! I probably couldn't get $5 for my house now.
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Old 02-13-2009, 08:14 AM
 
Location: The Communist State of NJ
7,174 posts, read 11,052,149 times
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Quote:
Originally Posted by wileynj View Post
There was a thread on this subject already...it's not a tax - it's a temporary hold on monies if you move out of State to make sure you don't owe anything..it gets returned! We're ya thinking about heading? Come on...just move out to Steweyville... BBQ's every weekend at Wiley's place
Don't tease us like that!!!!
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Old 02-13-2009, 01:02 PM
 
Location: The Beautiful Pocono Mountains
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Ok, I didn't see the old thread.

Anyone know why they "hold" money?? Or how long they hold it?

We weren't really thinking of leaving NJ, one of my daughter's said something like we should go out by Nana's and someone else said, "no, you'll have to pay the exit tax". I didn't know that they give it back to you.

Wiley, I like Stewartsville, just not Pburg HS for the girls. That's the only thing stopping me from several of the western towns.
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Old 02-13-2009, 01:30 PM
 
9,124 posts, read 34,428,239 times
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I believe the $$ gets held until the next tax season, so they've got it to cover any capital gains tax you may have. I'm not sure if it's an escrow account, or if it's sent to the state as estimated taxes.
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Old 02-14-2009, 05:26 AM
 
Location: The Beautiful Pocono Mountains
5,450 posts, read 8,201,534 times
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Quote:
Originally Posted by BobKovacs View Post
I believe the $$ gets held until the next tax season, so they've got it to cover any capital gains tax you may have. I'm not sure if it's an escrow account, or if it's sent to the state as estimated taxes.
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?

This is confusing and I'm thinking completely unneccessary. Any idea if this will ever be repealed?? I think it should be. Do any other states have this?

Sorry for all the questions. This is all new to me.
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Old 02-14-2009, 05:48 AM
 
Location: Stewartsville, NJ
7,577 posts, read 21,373,120 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?

This is confusing and I'm thinking completely unneccessary. Any idea if this will ever be repealed?? I think it should be. Do any other states have this?

Sorry for all the questions. This is all new to me.
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
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