Will N.J. tax the sale of my Florida home?

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Q. If I have been a resident of Florida and sell my primary residency in Florida, then move to New Jersey that same year, do I have to pay New Jersey capital gains on the sale?
— Moving soon

A. Welcome to New Jersey!

State income tax is based on your residency at the exact time of the transaction.

If you sell your primary residence in Florida and then move to New Jersey as you outlined, then you will avoid New Jersey tax, said Gail Rosen, a Martinsville-based certified public accountant.

“In addition, you are eligible to exclude $250,000 of gain on the sale of your principal residence — $500,000 if you are married and file jointly — for federal and New Jersey purposes if you owned and occupied your home as your principal residence for at least two of the last five years, ending on the date of sale.”

Good luck with the move!

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This story was originally published on Jan. 13, 2022.

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