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sold NJ Cond after more than 2 years, no capital gains tax due, owned and lived in it for over two years. Hud Statement line 1203 shows NJ Real Estate Transfer Tax of $ 1500.00. Is this 1500 deductible in addition to the State Sales/Income tax on the federal return on line 7 of schedule A? On the NJ part year resident return?
Also, I am new to PA returns. I guess PA is really straight forward, no exemptions, no deductions?
Thanks for your help.
MC1
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No. of Recommendations: 1
sold NJ Cond after more than 2 years, no capital gains tax due, owned and lived in it for over two years. Hud Statement line 1203 shows NJ Real Estate Transfer Tax of $ 1500.00. Is this 1500 deductible in addition to the State Sales/Income tax on the federal return on line 7 of schedule A? On the NJ part year resident return?
Also, I am new to PA returns. I guess PA is really straight forward, no exemptions, no deductions?
Thanks for your help.


No. The NJ Real Estate Transfer Tax is not deductible. It is a cost of sale which reduces your gain on the sale. Since you state that no capital gains are due (presumably you met the primary residence ownership and use requirements), you can ignore the transfer tax.

Ira
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