New Jersey "exit tax" questions. (Nonresident sale of NJ real estate)
December 30, 2013 8:47 PM   Subscribe

How do I file to get the money back that was withheld at the closing of a condo in New Jersey?

Ex-spouse and I bought a condo in NJ in 2000. I moved out of the state in 2010. Ex lived in the condo until May 2013. We were divorced in July 2013. Condo was sold in October 2013. Both of our names were on the deed, but as a condition of the divorce I got all the proceeds from the sale. Total profit on the sale was under 250K.

At the time of the sale the GIT/REP-1 form was filed and a percentage of the sale was withheld. My real estate agent told me that there was a way I could file to get some or all of it back since I don't owe NJ any back taxes or anything.
I've been to http://www.state.nj.us/treasury/taxation/gitrepfaqs.shtml and the bottom of the page at http://www.state.nj.us/treasury/taxation/prntgit.shtml but don't see anything there that seems to apply to my situation.

Can someone please tell me if there is a form I need to file to get the money back? Do I have to file a 1040 in NJ? Since the property was sold by the two of us as a couple, do I have to file that way? Or just as myself since I got the proceeds and we're divorced now? Or is there some loophole since my ex was a resident within the appropriate time period? Or was my agent wrong about my being able to get money back?

Thanks for any direction you can give me.
posted by bink to Work & Money (2 answers total)
 
There is no exit tax in NJ, it is simply a prepayment of income taxes owed for living in the state part of the year. Either you or your ex will have to file an income tax return in NJ to get it back. Since it was your ex who was still living in NJ, most likely it will be she who will have to file, but I'm not sure. An experienced tax preparer in NJ would certainly know more about it.
posted by jenjenc at 8:05 AM on December 31, 2013


Response by poster: OK, but my ex didn't get the proceeds from the sale. Would that matter?
posted by bink at 11:28 AM on January 1, 2014


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