LIVINGSTON, NJ — Michael H. Karu, CPA/CFF, a member of Livingston-based accounting and consulting firm Levine, Jacobs & Company, LLC, recently clarified the tax implications to people who sell homes outside of New Jersey—particularly in New York—during an interview with NJ.com.
In this particular scenario, the assets were going to be split three ways between relatives.
“Because the property is in New York, you will have to file and pay tax to the State of New York,” said Karu. “As a New Jersey resident, the profit also will be taxable to New Jersey. However, you will receive a credit against your New Jersey tax for the tax paid to New York.”
He elaborates further with an alternative of “gifting your one-third interest in the house to your mother.”
“That would transfer the filing responsibilities and tax consequences to her,” he said.
To read the article for further guidance, click here.
To speak with and/or set up an interview with Karu, contact Amy Delman of Amy Delman Public Relations, LLC, at 201-563-4614 or email@example.com.