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Sellers Residency Certification/Exemption Instructions Individuals, estates, trusts, or any other entity selling or transferring property in New Jersey must complete this form if they are not subject to the Gross Income Tax estimated payment requirements under N.J.S.A. 54A:8-9.
New Jersey withholds either 8.97% of the profit or 2% of the selling price, whichever is higher, he said. This estimated tax is adjusted when the seller files a New Jersey tax return for the year of the sale, he said. The seller must pay this tax prior to leaving the state, even if there is no gain from the sale.
Despite the confusion caused by calling it an exit tax, the law simply requires the seller to pay state tax in advance, calculated as follows: New Jersey withholds either 8.97% of the profit or 2% of the selling price, whichever is higher.
Taxpayers who do not have Internet access can make a payment by e-check by contacting the Divisions Customer Service Center at 609-292-6400. Credit card payments can also be made by phone (1-800-2PAYTAX, toll-free).
You will report any income earned on the sale of property as a capital gain. When filing your New Jersey Tax Return, a capital gain is calculated the same way as for federal purposes. Any amount that is taxable for federal purposes is taxable for New Jersey purposes.
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People also ask

Section 1031 exchange One of the most popular techniques to avoid capital gains taxes is the 1031 exchange. This is a tax code that allows you to reinvest the profit from the sale of your investment property into the purchase of another like-kind property.
Sellers Residency Certification/Exemption Instructions Individuals, estates, trusts, or any other entity selling or transferring property in New Jersey must complete this form if they are not subject to the Gross Income Tax estimated payment requirements under N.J.S.A. 54A:8-9.
New Jersey exit tax particulars The New Jersey exit tax requires you to withhold either 8.97 percent of the profit/capital gain you make on the sale of your home or 2 percent of the total sale price: whichever is higher.
The New Jersey exit tax requires you to withhold either 8.97 percent of the profit/capital gain you make on the sale of your home or 2 percent of the total sale price: whichever is higher.
Section 1031 exchange One of the most popular techniques to avoid capital gains taxes is the 1031 exchange. This is a tax code that allows you to reinvest the profit from the sale of your investment property into the purchase of another like-kind property.

new jersey seller's residency certification