Question on exit tax when moving from NJ

[pivo]

I have been trying to sell my home here in N.J. for over a year now hopefully moving to the Villages, but yesterday I got another surprise I was told about an exit tax on your home if moving to another state.
Well I checked the internet and every comment was different from the other no help
So has anyone from Jersey who sold their home to move to Florida have to pay a exit tax, if so how much and is their some way a avoid the tax
Thank You

[Rango]

Check with an accountant

[NECHFalcon68]

I have been trying to sell my home here in N.J. for over a year now hopefully moving to the Villages, but yesterday I got another surprise I was told about an exit tax on your home if moving to another state.
Well I checked the internet and every comment was different from the other no help
So has anyone from Jersey who sold their home to move to Florida have to pay a exit tax, if so how much and is their some way a avoid the tax
Thank You

Sent you a PM...

[lewie]

I have been trying to sell my home here in N.J. for over a year now hopefully moving to the Villages, but yesterday I got another surprise I was told about an exit tax on your home if moving to another state.
Well I checked the internet and every comment was different from the other no help
So has anyone from Jersey who sold their home to move to Florida have to pay a exit tax, if so how much and is their some way a avoid the tax
Thank You

Yes; we paid an exit tax to move from NJ to The Villages. Your best bet to finding the amount you would owe is to ask your attorney and/or your realtor. It is 2% of some amount as set forth by IRS & NJ deed guidelines. (Friends who moved to PA 10 years ago also paid an exit tax.) If you are 62+ years old when you sell then it was discounted. Those were the parameters when we sold last year but that is not to say that they are the same for now. Good luck!

[TNLAKEPANDA]

The NE will never stop finding things to tax you on! Bite the bullet and get out as quick as you can.

[stroglass]

Yea we are also paying New jerseyfor the privlege to leave the high taxes and cost of living.We close next month on our nj home and was told it will be 800.on we get a deduction because my husband is over 62
I feel that it OK this will be the last thing NJ will get from us

[NECHFalcon68]

Yes; we paid an exit tax to move from NJ to The Villages. Your best bet to finding the amount you would owe is to ask your attorney and/or your realtor. It is 2% of some amount as set forth by IRS & NJ deed guidelines. (Friends who moved to PA 10 years ago also paid an exit tax.) If you are 62+ years old when you sell then it was discounted. Those were the parameters when we sold last year but that is not to say that they are the same for now. Good luck!

How was it listed on the HUD-1 form? Which line#?

[JP]

I can't believe they can charge you an exit tax. That's really something else. Be glad you are out of there. The last person out of NJ turn the lights out.

[pivo]

I'm not out of here yet but can't wait to get down there, with the weather, taxes, and rat race it would be a pleasure to leave.
thank you all for your comments

[Rbgold]

I think you might be confusing it with the Realty Transfer fee that is assessed on all real estate transactions in NJ. Sliding scale based on sale price of home and paid by seller. Seniors do receive a break on this. Check with your accountant. It does appear on HUD -1 form.

[pivo]

I'm so confused now I understand if you sell jersey home and move to Fl. you now have to claim residency in Fl. which in case is called an exit tax because of changing residency.
It will probably change tomorrow like everything else in this state

[njbchbum]

pivo - you might want to go to this web page Division of Taxation - Current Year Gross Income Tax Forms (http://www.state.nj.us/treasury/taxation/prntgit.shtml) , scroll to the bottom and read/copy the forms under the 'Estimated Tax Forms for Nonresident Sellers of Real Property in New Jersey' section.

hope that helps rather than makes thing worse!

[DonH57]

Just being curious but if you sold property in New Jersey how would New Jersey know if you next rented or bought property in another state. We used to live in Taxachusetts and if any state could come up with tax to move in or out it would be Massachusetts. LOL.

[Doctor Who]

This tax is like the Jersey Devil, it does not exist. We lived and left NJ for TV. Paid no exit tax. We used a qualified real estate attorney and I use a NJ certified accountant. We did pay a transfer tax which is adjusted for your age. Please dont give NJ any more money than necessary! The Jersey Devil by the way was last seen in Turkey Swamp Park being stalked by NJ hunters.

[JerryP]

This tax is like the Jersey Devil, it does not exist. We lived and left NJ for TV. Paid no exit tax. We used a qualified real estate attorney and I use a NJ certified accountant. We did pay a transfer tax which is adjusted for your age. Please dont give NJ any more money than necessary! The Jersey Devil by the way was last seen in Turkey Swamp Park being stalked by NJ hunters.

I thought I saw him all the way up on 78 by the Clinton exit last week.

[Parker]

Transfer Tax is what the state smugly calls it. Exit Tax is what a taxpayer rightly calls it.

[MikeV]

Yes I paid 2% also. Sold my fathers house after he died and because I was from Florida I had to pay the tax. I guess the state felt he exited NJ.

[Vladimir]

Transfer tax or exit tax is one and the same. Just moved from NJ and before I moved here I rented in NJ for 3 months after I sold my house. Paid about $500 at closing so the state gets the money and does not care where you move or rent or even stay in NJ - they get their money. HUD line item 1206

[MikeV]

Transfer tax or exit tax is one and the same. Just moved from NJ and before I moved here I rented in NJ for 3 months after I sold my house. Paid about $500 at closing so the state gets the money and does not care where you move or rent or even stay in NJ - they get their money. HUD line item 1206

HUD line item 507 - Non Resident Tax - $2200 on a $110,000 sale price.

[dominick]

I must have paid the tax without knowing it. I was so happy to sell my home at a huge gain and get out of there that I didn't even notice. Silly me!!

[gustavo]

I'm so confused now I understand if you sell jersey home and move to Fl. you now have to claim residency in Fl. which in case is called an exit tax because of changing residency.
It will probably change tomorrow like everything else in this state

I sold a house in NJ. The 2% is not an exit tax, it's a mandatory withholding for estimated tax for non residents. (see line 1117 of the HUD-1) When you file your NJ non resident income tax return, if you had a gain on the house per NJ law you will have that estimated payment applied to the tax due on the gain. If you didn't have a gain, you will get the estimated payment refunded to you.

BTW, the tax on the house gain is also due for a NJ resident but they are not required to put the estimated payment up front as they are not "fleeing" the state.

Hope that helps.