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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-pa...

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1 Reply
rjs
Level 15
Level 15

Real estate transfer tax - withholding?

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.

 

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