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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2853
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I need help to fill up Asset Transfer Tax Declaration (P.L

Customer Question

I need help to fill up Asset Transfer Tax Declaration (P.L 2007, Chapter 100 NJSA 54:50-38).
Scheduled closing day: 08.24.16
I bought the house on April 2015 for $ 372,000 and I'll sell it for $600,000
I spent $19,289 on purchasing closing, $8,678 for repairs and utilities ( it's an investment house, full rented).
Estimated Selling closing cost: $ 4,950
Real estate selling commission: $ 30,000Selling price: $600,000
Total settlement charges: 372,000+30,000+19,289+4,950+8,678= 434,917I don't know what is Cost After Depreciation. House is build 2006 and I bought it on 2015.
I don't know to determine Current Year Loss.
No Carryover
(Capital)Gain ? = 600,000- 434,917 -?-? = 165,083
Current Year Gain ? =?My total income, including $165,083 Capital Gain, put me on 25% - 35% tax bracket. According to IRS Publication 17, Your Federal Income Tax, chapter 16, Table 16-1,
my capital gains tax rate is 15%
(please correct me if I'm wrong)Estimated Tax on Gain Due = 15% x 165,083= $24,762.45I wish you to tell me if my counts are correct, then please help me with Cost After Depreciation and Current Year Loss.
Having the above numbers, I'll be grateful to you if you can fill up for me the Asset Transfer Tax Declaration.Thank you very much for your cooperation,Chirea Butnaru
Submitted: 3 months ago.
Category: Tax
Expert:  Megan C replied 3 months ago.

Thank you -- just wanted to make sure.

Sales and Use tax are unique in that they are supposed to be collected and then remitted to the state - the company is not actually paying them. In this, they are considered a "trust fund tax" -- similar to payroll taxes. They aren't as easy to get forgiven or get forbearance on.

According to the NCDOR,

If you have received a Notice of Collection, then an assessment against you has become final and collectible. Your account has been assigned for collection. If the liability is not paid, North Carolina General Statutes authorize the Department of Revenue to pursue one or more of the following collection options under NC Gen. Stat. §105-242:

  1. Attach and Garnish your wages, salary or bank deposits.
  2. Issue a Tax Warrant directing the sheriff or a designated employee of the Department of Revenue to levy upon and sell your property.
  3. File a Certificate of Tax Liability (i.e., a lien on your property).
  4. Where criminal tax proceedings are initiated, request payment of taxes as a condition of any plea arrangement or as restitution upon any conviction.

If the Department of Revenue pursues the collection options set out above, the following options or remedies are available to you:

  1. You can end the attachment and garnishment of your wages, salary, and bank deposits and the seizure of your property by making full payment of the assessed liability.
  2. You can secure the release of a Certificate of Tax Liability by making full payment of the assessed liability.
  3. You can seek the release of a Certificate of Tax Liability (CTL) if one of the following conditions are met:
    • The judgment was filed in error.
    • The liability has become unenforceable due to the lapse of time.
    • The CTL is creating an economic hardship for you.
    • The fair market value of the property exceeds the tax liability and release of the CTL on part of the property would not hinder collection of the liability.
    • Releasing the CTL would increase the State’s chances for collecting the tax.
  4. You can seek to enter into an installment payment agreement.
  5. In the event criminal tax proceedings are initiated, you should contact your attorney and the prosecutor to determine your options.

If you wish to pursue any of these options or remedies, please contact the Department at the number listed on the front of the Notice of Collection.

http://dornc.com/collect/options.html

For assistance which is free, I suggest contacting the NCDOR Taxpayer advocate services - that way, you have an impartial person who can assist you in this very stressful situation:

http://dornc.com/practitioner/taxpayer_advocate/index.html

Please let me know if you need anything additional. If not, please rate positive.

Customer: replied 3 months ago.
You scared me a lot. I hope is a miss understanding.
I didn't receive a Notice of Collection. I didn't sell yet the house.I going to sell my personal house. Closing is scheduled for the day after, 08.24.2016
The purchaser's attorney sent us the request to fill up the Asset Transfer Tax Declaration in order to determine the due Gain Tax to be withheld at time of closing, which is a prepayment of taxes with regard to the sale.I need your help to determine the amount of Capital Gain tax and to fill up the ATTD.
Expert:  Megan C replied 3 months ago.

I'm sorry. I clicked on your question when I went to answer another one. My bad.

Sorry for the confusion. I'll take a look and get right back with you on your answer

Customer: replied 3 months ago.
Please see attached the Asset Transfer Tax Declaration form that I need to fill up.
Is it possible to have your answer soon?
Thanks
Customer: replied 3 months ago.
I'm sorry bothering you, my attorney is putting pressure on me to have all the documents done for scheduled closing.
Please try to provide me your answer ASAP.Many thanks for your understanding.
Customer: replied 3 months ago.
What i have to do to get your correct answer to my question?
Send me a message to know you're still in touch with this problem.
Expert:  Barbara replied 3 months ago.

Different expert here - My name is ***** ***** I can assist you.

What time is your closing tomorrow?

Since you are selling a rental property, I need to know the depreciation for the property on your 2015 tax return.

So far,

Line 1 = $600,000

Line 2 = $34,950 (closing costs for THIS transaction)

Line 3 - I can provide this number once you provide the depreciation you have claimed.

Some of the lines will not have an entry.

You will be using your NJ 1040 Tax rate NOT the tax rate from IRS Publication 17.

See the instructions at the following link for the Asset Transfer Tax Declaration:

http://www.state.nj.us/treasury/taxation/pdf/ttdv1.pdf

I will be available early tomorrow morning (before 8:15 am) and then not until after 3:30 pm.

Best regards,

Barb