By: Jeffrey D. Urbach, CVA, CPA/ABV/CFF Business owners have been saving estate taxes by transferring assets in the form of FLPs (Family Limited Partnerships) or outright gifts of company stock to family members. The tax savings are the result of... Read More
Archive for the 'Taxes' Category
Out of state staffing firm not registered in NJ didn’t have right to enforce contract in NJ courts, also no right to pursue collection of fees in NJ courts
Did you check your NJ SUI rates? Over the last few weeks, all New Jersey employers received a Notice of Employer Contribution Rates. This is not a bill, but rather a summary of the manner in which the NJ Department of Labor calculates the employer... Read More
The FBAR: Who Should File? Do you have income overseas you forgot to report? Did Grandpa leave you his foreign bank account when he passed away? If you have foreign bank accounts holding more than $10,000 in the aggregate anytime during the year, you... Read More
NJ employers can reduce NJ SUI (unemployment rates) by making a voluntary payment. The deadline in August 25, 2015.
Distributions made by March 5, 2015 are a way to significantly lower the 2014 income tax for trusts and estates even though it will increase the individuals personal income tax. Deadline is March 5, 2015 to make that special election for 2014.
Hit by NJ Exit Tax? Non-residents can recoup the withholding.
NJ Employers can Reduce their NJ Unemployment Rates by making a Voluntary Payment- the Deadline is August 19, 2014
Owners of foreign bank accounts have until June 30, 2014 to file IRS Form 114- Foreign Bank Account Reporting (FBAR). Even if the bank account doesn’t generate income, just owning it or having signature authority requires you to file the FBAR.
If you’re a non-resident selling investment real estate in New Jersey, there’s a unique NJ tax you should be aware of. Both residents and non-residents always had to pay income tax on the gain upon the sale of real estate. This tax is required to be withheld for non-residents. The “Exit Tax”, which came into law six years ago, requires the seller to file a GIT/REP form (Gross Income Tax form) in order to record a Deed for the transfer of his property. When a non-resident sells the property, New Jersey will withhold this income tax in the amount of either 8.97 percent of the profit or 2 percent of the total selling price, whichever is higher. Therefore, even if the property is sold at a loss, tax must be withheld to fulfill the two percent requirement.
It’s important to realize that while the Exit Tax requires a substantial withholding, it doesn’t have any impact on the tax liability. If a taxpayer has excess withholding it would be prudent to file Form NJ1040 (individual) or NJ1041 (estate) quickly to expedite the recovery of the excess withholding.