Legal Question in Tax Law in New Jersey

I inherited my Dad's home in NJ in 1991. My stepmother had a life estate. When she moved to a nursing home in 2011, she deeded the property to me, and I sold the property. I am a permanent resident of Virginia. NJ withheld $3500 at closing because I am a non resident. How do I get this money back?

Asked on 5/03/12, 10:02 am

1 Answer from Attorneys

Walter LeVine Walter D. LeVine, Esq.

There has to be a NJ Income Tax Return filed, reporting the sale, as it is considered NJ source income. The payment you made at the time of sale will be considered a tax deposit, and the tax based upon the profit you realized (basis vs sales price). You may be entitled to a refund if the estimated tax was over-estimated, or still owe something if the deposit was understated. I can assit you and contact me directly if you need assistance.

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Answered on 5/03/12, 12:34 pm


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