In New Jersey, nonresidents are taxed only on income derived from New Jersey sources, such as the sale of property located in the state. The $272K you mentioned, which includes both price appreciation and depreciation recapture, would generally be considered taxable income for New Jersey if it represents the gain from the sale of property in the state.
The 2% withholding is an estimated tax payment on the gross sales price, not the actual taxable gain. This withholding is meant to ensure some tax is collected at the time of sale, but it may not fully cover your tax liability if your actual taxable gain is significant. You would need to calculate your exact tax liability based on the gain and file the NJ-1040NR to determine if you owe additional taxes or are eligible for a refund.
The income from the property sale is not spread over the 12 years of your nonresident period; it is treated as income for the year in which the sale occurred. If you believe the withholding is insufficient, you may owe more taxes when you file your return.
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