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Level 2
posted Mar 29, 2022 8:54:33 PM

Real estate transfer tax - withholding?

Should real estate transfer tax levied by the state (e.g. Connecticut conveyance tax) be entered as a withholding, similar to what is described in the below link? Or, is this treatment specific to New Jersey?

 

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/where-do-i-report-nj-exit-tax-paid-to-nj-on-sale-of-primary-home-sold-at-a-profit-in-2015/00/404841

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1 Replies
Level 15
Mar 29, 2022 10:18:17 PM

No, you do not enter the transfer tax as withholding. The so-called "exit tax" in New Jersey is not really a tax at all. It is actually withholding, and that's why it's entered that way. If you sold a home, you include the transfer tax in the basis when you report the sale.