Date: February 20, 2024Attorney: Martin D. Hauptman
The New Jersey Division of Taxation has issued updated guidance on tax withholding and estimated tax requirements for nonresidents selling real estate in the state. Here’s a brief overview:
- Tax Withholding Requirements: Nonresidents are required to withhold income tax at the higher of two options: either 10.75% of the reportable gain or 2% of the total consideration.
- Reporting to the Division of Taxation: Various GIT/REP forms are available to report sales to the Division of Taxation. These forms also outline procedures for obtaining exemptions from withholding requirements.
- Refund Claims: Nonresidents can file refund claims if the tax withheld exceeds their actual tax liability. This process ensures fair taxation and allows individuals to recover any excess amounts withheld.
For detailed information and forms, refer to New Jersey Division of Taxation Technical Bulletin No. TB-57(R) dated 01/30/2024.
Ensure compliance with these updated requirements to avoid penalties and transaction delays. Consult with tax professionals for personalized guidance based on your circumstances.
For additional details and tax advice, please contact Martin D. Hauptman at (973) 243-7912 or via email at mhauptman@mblawfirm.com