Yes! I am having the same issue. Checked using paper copy and paper instructions for Nj-1041. It appears that there is not a 'deduction' for real estate property taxes paid for by the estate on form NJ-1041 like there is on the federal form 1041 (line 11). Since there is no "deduction" on NJ-1041, it ends up treating the amount spent on real estate property taxes as taxable income ( (line 23 of NJ-1041). Not sure if this is correct, so hoping for some expert tax advise here.
