Another expert here.
1. There is not a special tax on vacation property; but there are some special rules that require withholding of estimated tax payment from nonresidents at the time of sale in New Jersey (which is quite confusing for many).
See, for example, the article N.J.'s exit tax: So baffling, even officials can't explain it
"Here's how the exit tax works: As soon as a non-resident sells a property, New Jersey withholds either 8.97 percent of the profit or 2 percent of the total selling price, whichever is higher."
"When such a seller eventually files his New Jersey tax return, he is refunded the difference between what is owed and what was withheld."
For more information see the FAQ from the NJ tax department at
"Q: How do non-resident sellers/grantors calculate the estimated Gross Income Tax payment on the sale/transfer of real property in New Jersey?
A: In accordance with N.J.S.A. 54A:8-9(a), the gain on the sale/transfer is multiplied by the highest rate of tax (8.97% effective 8-1-2004) for the taxable year provided in N.JS.A. 54A:2-1, but the estimated tax payment shall not be less than 2% of the consideration for the sale or transfer stated in the deed affecting the conveyance."
Estimated tax payment will be collected at the time of sale from a nonresident and used in computing the balance due or refund when the New Jersey tax return is later filed.
2. The new Medicare tax that begins in 2013 is a 3.8 percent tax on the taxable profit from the sale of a home and from all taxable investment income (interest, dividends, annuities, royalties,...) when modified adjusted gross income exceeds $200,000 filing single or $250,000 married filing jointly.
The rate is 3.8% in addition to any other capital gain tax; but whether or not it will be applied to this sale will depend on your modified adjusted income when filing for 2013.
Of course, there is a distinct possibility that law will change before 2013, as well.
For more information see http://health.burgess.house.gov/uploadedfiles/one_page_on_unearned_medicare_tax.pdf
Please remember when you are asked to rate my service that you are rating me, personally, for the service and information that I have provided. You are not rating this website or the situation itself. Negative rating affects me greatly; so if you feel the need to rate one of the first 2 (negatives) please click reply to expert or continue the conversation and let me know what more I can do to help or to explain. A positive rating is the only way that I receive credit for my time and effort to assist you.
Please ask if you need clarification.