The New Transfer and Mansion Taxes
and What They Mean to You - the Non-Resident NJ Seller
The increased Realty Transfer Fee (RTF) rates require the filing
of estimated gross income tax on the transfer of real property by nonresidents
of the State as a condition of record effective August 4, 2004. Any "old" deeds
dated prior to August 1 must be submitted to the county recording office by
September 30, 2004 or the new, larger RTF will be charged. It is recommended
that documents be hand delivered or be delivered by overnight courier.
Participating in future closings requires agents to have every non-resident
seller complete the gross income tax forms making an estimated tax
payment to be estimated by the seller, not the closer. Payment
must be attached with this form and submitted for recording and reflect 8.97% of
the seller's gain or 2% of the sale price.
In no case may the estimated tax payment be less than 2% of the
consideration paid.
The "Mansion Tax" increase also affects buyers. There is a Mansion Tax on all
properties $1,000,000 and over which require a 1% fee to be paid by the
buyers.
For additional information -
