In general, failure to have health coverage or qualify for an exemption may result in the assessment of a Shared Responsibility Payment (SRP) on your New Jersey Income Tax return. Individuals who are not required to file a New Jersey Income Tax return are automatically exempt from the SRP. The amount of the SRP is generally based on your income and family size and is capped at the statewide average annual premium for Bronze Health Plans in New Jersey.
If you are a New Jersey resident, all of your capital gains, except gains from the sale of exempt obligations, are subject to tax. When you calculate the gain or loss from each transaction, you can deduct expenses of the sale and your basis in the property. The basis to be used for calculating gain or loss is the cost or adjusted basis used for federal income tax purposes. There is no exception to Depreciation recapture when a rental property is sold for Federal or State purposes.
Note: For the shared responsibility payment, household income is the income of all members in a household, including dependents. Therefore, the SRP would d include capital gain from the sale of your rental property. You could try calling NJ to discuss SRP exemption given your situation.
Use the link below to apply for NJ health insurance mandate coverage exemptions:
NJ Health Insurance Mandate
Additional information:
NJ Gov
Review the section in the link below regarding the Exemption from Shared responsibility payment.
Questions and answers on Individual SRP
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