A-3128 for NJ

Forum|Forum|4 years ago
April 6, 2022
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How do I find the Federal Adjusted Basis for the home I sold? This is required for A-3128 NJ form.

Federal forms have DIFFERENT/CONFUSING amounts on Disposition Report, Smart Worksheet, and Fed #4797 forms. It looks like Fed forms split Land/Building but I have not idea which form is correct. WHICH FORM IS CORRECT?

RobertB4444

Level 15

Use the basis from form 4797. That is your federal adjusted basis.

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donnel904-aol-coAuthor

Level 2

I am confused. Form 4797 calculates adjusted basis for the building potion only and shows the land potion as a “gain”. Am I supposed to ADD the Adjusted Basis for the Building PLUS the land portion to get the total adjusted basis?? I don’t think reporting only the building basis portion (and excluding the land portion) for NJ form would make sense.

DaveF1006

Level 15

No. The two are reported separately on the 4797 and are not combined together. The reason the building basis is adjusted is because depreciation recapture is taken into consideration to lower (adjust) your basis for the building. Land has no depreciation considerations as it does not depreciate for tax purposes. The only basis adjustments that may be considered for land are land improvements that were made while you owned the property. Both these components are listed separately in part 11 Box 10 of the 4797.

I am confused by your second question. Were the land and building sale not reported to New Jersey?

@donnel904-aol-co

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