25 Apr Home sales and the “realty transfer fee”
Q. Last June, I sold my house in Wall Township. I left New Jersey and I currently reside in Delaware. At the house closing on June 15, 2015, a charge of $2,537.50, titled “Realty Transfer Fee to Monmouth County Clerk” was assessed. Can I claim all or a part of the $2,537.50 on my 2015 taxes?
— Moving on
A. We’ve got good news for you.
The $2,537.50 Realty Transfer Fee is part of your closing costs, said Altair Gobo, a certified financial planner with U.S. Financial Services in Fairfield. That cost gets added to your cost basis of your home.
Gobo said in order to determine the tax liability on the sale of your home, you would take the net sales price and subtract the cost basis, which includes the purchase price, improvements you made over the years and items.
Plus, assuming this was your primary residence, you’re also entitled to a $250,000 exclusion, or $500,000 if you’re married.
Gobo said the basic rule of thumb to take your net sales price, then subtract the cost basis and your exclusion, and that’s how you arrive at your taxable gain on the home.
If you’re not sure, consider working with a qualified tax professional to be sure you take advantage of what’s permitted for this sale.
If you didn’t use this as part of your calculation when you filed, you can always file an amended return.
Good luck in Delaware, but we’ll miss you in Jersey!
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This post was first published in April 2016.NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.