Yes. The amount would transfer to the NJ return, if taxable.
Resident Taxpayers: New Jersey residents (individuals, estates, and trusts) who sell a home and maintain New Jersey residency file form GIT/REP-3 Seller’s Residency Certification/Exemption. The completed GIT/REP-3 form is due at closing and exempts the seller from paying an estimated Income Tax payment at that time. Instead, the resident seller will pay all necessary Income Tax, including tax on any capital gain from the sale of property, when it comes time to file the NJ-1040 Resident Income Tax Return.
You will report any income earned on the sale of property as a capital gain. When filing your New Jersey Tax Return, a capital gain is calculated the same way as for federal purposes. Any amount that is taxable for federal purposes is taxable for New Jersey purposes. See IRS Publication 551 for more information on Cost/Adjusted Basis. New Jersey residents must complete Schedule B of the NJ-1040 and report any gain from the sale of property as Net Gains or Income From Disposition of Property (if loss, enter 0).
