curiousgeorge
Junior Member
Joined: Feb 22, 2011 22:11:06 GMT -5
Posts: 131
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Post by curiousgeorge on Apr 9, 2015 11:02:48 GMT -5
Hello tax experts,
New Jersey resident sold rental property located in New York. Is capital gains from sale taxable New Jersey taxable income?
Thank you!
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taxref
Junior Member
Joined: Dec 31, 2010 11:09:13 GMT -5
Posts: 220
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Post by taxref on Apr 9, 2015 14:47:18 GMT -5
The basic answer is yes, the gain is part of NJ income. NJ taxes its residents on all income, no matter where the source of that income might be.
When doing your state returns, complete your NY IT-203 first. Then complete your NJ-1040. On NJ Schedule A/B you can claim a credit for most of the NY tax you paid on the gain. I say most because the credit is based on NJ tax rates, which are a bit lower than the NY rates.
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curiousgeorge
Junior Member
Joined: Feb 22, 2011 22:11:06 GMT -5
Posts: 131
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Post by curiousgeorge on Apr 9, 2015 17:45:39 GMT -5
Thanks so much taxref!  |
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mwcpa
Senior Member
Joined: Jan 7, 2011 6:35:43 GMT -5
Posts: 2,425
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Post by mwcpa on May 3, 2015 20:07:14 GMT -5
One should also not forget that NJ is a "gross income" state.... that means if you had capital loss carry overs from the past NJ does not allow them....
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mollyanna58
Junior Associate
Joined: Jan 5, 2011 13:20:45 GMT -5
Posts: 6,665 
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Post by mollyanna58 on May 4, 2015 7:32:48 GMT -5
I had this situation with a couple pieces of property in NY; I have always lived in NJ. I had to file state tax returns for both NY and NJ for the two separate years in which the sales took place.
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