New Jersey Tax Laws Strike Again:  New Jersey Just Added Another Tax – This Time It’s a Tax on Short-Term Rentals

HNW Real Estate, Landlord/Tenant, and Zoning

By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold Township, Monmouth County NJ Real Estate Law Firm If you engage in any “transient rentals” (defined as rentals of 90 days or less), you must collect sales and occupancy taxes as of October 1, 2018.  There are, however, some exclusions. If you rent your property through a licensed realtor, sales and occupancy taxes do not apply. For this exception from sales/occupancy taxes to apply, the renter must pick up the keys from the realtor, and no in-stay maid services can be provided. If you rent your property on an online marketplace which charges the renter directly (such as AirBnb), then the marketplace itself must collect the sales and …

How to Defeat the NJ Inheritance Tax

HNW Elder Law, Estate Administration and Probate

By Fredrick P. Niemann, Esq. a NJ Estate Administration Lawyer New Jersey is looking to raise revenue from everybody, everywhere, especially the estates of moderate to wealthier New Jersey residents.  In one case, a decedent had a will that poured-over estate assets to a revocable trust. The Trust distributed the funds in 3 equal shares to the son & daughter-in law, another son and daughter-in -law and a daughter and son-in-law.   The documents were originally drafted in Florida.  Decedent died a NJ resident.  A NJ Inheritance tax auditor has taken the position that a portion of the trust given to the son/daughter as a class A beneficiary is exempt from NJ inheritance tax but to the daughter and son-in-law it …

A Granddaughter Does Not Owe Gift Tax on Money She Inherits for College Tuition

HNW Elder Law, Estate Planning

By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold, NJ Estate Planning Attorney I’m always asked about gift taxes when clients want to give away property to a loved one while alive or upon death. This frequent question generally involves gifts for college, a wedding or other major life event. The short answer is no gift tax is owed, but you will have to file a gift tax return (IRS Form 709) if you give a person more than $15,000 in any one year. The amount in excess of $15,000 will be deducted from your lifetime unified gift and estate tax exemption, currently $11 million in 2018. That’s not even a reality for 99.5% of Americans. If …

More Year End Tax Changes

HNW Real Estate, Landlord/Tenant, and Zoning

Besides cancellation-of-debt relief, the Mortgage Forgiveness Debt Relief Act of 2007 has other provisions that might prove helpful to you. More time for surviving spouses You can exclude $250,000 worth of gains from the sale of your home.  Married couples filing jointly get an even better break:  They can exclude up to $500,000 of gains as long as both spouses occupied the house as a principal residence for at least two years (730 days) of the five years preceding the sale. That sounds fine, but what if a hypothetical Beth Williams died in late 2007, and her widower Bob decides he wants to sell the big house in which they lived.  Under federal law, as an unmarried surviving spouse, Bob …