Revised GIT/REP-3

by Nancy Koch, Esq., Commonwealth Land Title Insurance Company, Published 11/28/2007

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Please be advised that the Division of Taxation has amended the GIT/REP-3 form to provide instructions about how to report transactions for which an exemption from the non-resident income tax is claimed under item 7 (the gain from the sale will not be recognized for federal income tax purposes under section 1031 of the Internal Revenue Code).

Please be reminded that the County Clerks will only accept the current form which should be downloaded from Division of Taxation's website as needed. A copy of the amended form as well as a memo from the Division of Taxation addressing this issue are available for download below.

P.L. 2004, C. 55, requires that on or after August 1, 2004, nonresident individuals, estates, or trusts that sell or transfer real property in New Jersey make an estimated gross income tax payment on the gain from a transfer/sale of real property as a condition of the recording of the deed.

The Division has determined nonresident taxpayers claiming an exemption under IRC section 1031 are exempt from making a payment for the like kind property received but must pay an estaimted tax payment on the Fair Market Value of the consideration received for the non like kind property.

Therefore, the taxpayer must submit both GIT/REP-1 and GIT/REP-3 to the County Clerk in the above circumstances.

GIT/REP-3 form and instruction have been revised to reflect this change.

For questions on Chapter 55 and the new Gross Income Tax estimated payment requirements, please refer to the instructions included with our GIT Forms REP-1, REP-2, and REP-3 or call the Division of Taxation, Taxpayer Services Branch at (609) 292-6400.

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