The increased Realty Transfer Fee (RTF) rates require the filing of estimated gross income tax on the transfer of real property by nonresidents of the State as a condition of record effective August 4, 2004. Any "old" deeds dated prior to August 1 must be submitted to the county recording office by September 30, 2004 or the new, larger RTF will be charged. It is recommended that documents be hand delivered or be delivered by overnight courier.

Participating in future closings requires agents to have every non-resident seller complete the gross income tax forms making an estimated tax payment to be estimated by the seller, not the closer. Payment must be attached with this form and submitted for recording and reflect 8.97% of the seller's gain or 2% of the sale price.

In no case may the estimated tax payment be less than 2% of the consideration paid.

The "Mansion Tax" increase also affects buyers. There is a Mansion Tax on all properties $1,000,000 and over which require a 1% fee to be paid by the buyers.

For additional information - Division of Taxation's  - www.state.nj.us/treasury/taxation

Nancy M. Alexander ABR, CRS, e-Pro, GRI
Stone Harbor and Avalon NJ Blog
Broker, Sales Associate
Nancy@NancyMAlexander.com
27 Years Seashore Experience. Dedicated to Customer Satisfaction!