State: NJ

Seller's Residency Certification/Exemption (GIT/REP-3)

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Seller's Residency Certification/Exemption (GIT/REP-3)

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GIT/REP-3 (6-10)

State of New Jersey
SELLER’S RESIDENCY CERTIFICATION/EXEMPTION
(C.55, P.L. 2004)

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SELLER(S) INFORMATION (See Instructions, Page 2)
Name(s)

Current Resident Address:

Street:
City, Town, Post Office
         
State  
   
  Zip Code
PROPERTY INFORMATION (Brief Property Description)
Block(s)

Lot(s)           Qualifier
Street Address:

City, Town, Post Office

State    Zip Code
Seller’s Percentage of Ownership   

Consideration      Closing Date
SELLER ASSURANCES (Check the Appropriate Box)  (Boxes 2 through 8 apply to Residents and Non-residents)

1.  0      I am a resident taxpayer (individual, estate, or trust) of the State of New Jersey pursuant to N.J.S.A. 54A:1-1 et seq. and will file  a resident gross income tax return and pay any applicable taxes on any gain or income from the disposition of this property.

2.  0      The real property being sold or transferred is used exclusively as my principal residence within the meaning of section 121 of the federal Internal Revenue Code of 1986, 26 U.S.C. s. 121.

3.  0      I am a mortgagor conveying the mortgaged property to a mortgagee in foreclosure or in a transfer in lieu of foreclosure with no additional consideration.

4.  0   Seller, transferor or transferee is an agency or authority of the United States of America, an agency or authority of the State of New Jersey, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Government National Mortgage Association, or a private mortgage insurance company.
5.  0     Seller is not an individual, estate or trust and as such not required to make an estimated payment pursuant to
N.J.S.A.54A:1-1 et seq.

6.  0     The total consideration for the property is $1,000 or less and as such, the seller is not required to make an estimated payment pursuant to N.J.S.A. 54A:5-1-1 et seq.

7.  0      The gain from the sale will not be recognized for Federal income tax purposes under I.R.C. Section 721, 1031, 1033 or is a cemetery plot.  (CIRCLE THE APPLICABLE SECTION).  If such section does not ultimately apply to this transaction, the seller acknowledges the obligation to file a New Jersey income tax return for the year of the sale (see instructions).
0     No non-like kind property received.

8.  0      Transfer by an executor or administrator of a decedent to a devisee or heir to effect distribution of the decedent’s estate in accordance with the provisions of the decedent’s will or the intestate laws of this state.

SELLER(S) DECLARATION

  The undersigned understands that this declaration and its contents may be disclosed or provided to the New Jersey Division of Taxation and that any false statement contained herein could be punished by fine, imprisonment, or both.  I furthermore declare that I have examined this declaration and, to the best of my knowledge and belief, it is true, correct and complete.  By checking this box  D  I certify that the Power of Attorney to represent the seller(s) has been previously recorded or is being recorded simultaneously with the deed to which this form is attached.

________________________________________________________
Date  
________________________________________________________
Signature
(Seller)  Please indicate if Power of Attorney or Attorney in Fact

______________________________________________________
Date 
________________________________________________________
Signature
(Seller) Please indicate if Power of Attorney or Attorney in Fact

 

Seller's Residency Certification/Exemption Instructions

This form is to be completed by individuals, estates, trusts or any other entity selling or transferring property in New Jersey not subject to the Gross Income Tax estimated payment requirements under C55, P.L. 2004.

Name(s):  Name of seller(s). If more than one owner separate forms must be used except for husband & wife/civil union couples that file their income tax returns jointly.

Address:  Seller(s) primary residence or place of business. Do not use the address of the property being sold.  Unless a new residence (permanent place of abode, domicile) has been established in New Jersey and said new residence is listed under seller(s) information, the seller(s) is considered a nonresident.  Part-year residents will be considered nonresidents.

Nonresident seller(s) will be required to make an estimated Gross Income Tax payment if they do not meet any of the seller(s) assurances.

Property Information: Information as listed on deed of property being sold.

Percentage of Ownership:  If there is more than one owner list sellers % of ownership.

Consideration: "Consideration" means in the case of any deed, the actual amount of money and the monetary value of any other thing of value constituting the entire compensation paid or to be paid for the transfer of title to the lands, tenements or other realty, including the remaining amount of any prior mortgage to which the transfer is subject or which is assumed and agreed to be paid by the grantee and any other lien or encumbrance not paid, satisfied or removed in connection with the transfer of title. If there is more than one owner, indicate seller's portion of total consideration received.  If the total consideration for the property is $1,000 or less complete the Seller’s Residency Certification/ Exemption form GIT/REP-3 and check box 6 under Seller’s Assurances.

Seller Assurances:  If you meet one of the eight criteria listed you are not required to make a tax payment at this time. Check which box is appropriate to your situation.  Note that boxes 2 through 8 apply to residents and non-residents.

Persons claiming an exemption under block #2 must be claiming an income/gain exclusion on their federal return for the property being sold within the meaning of §.121 of the Internal Revenue Code of 1986.

Non-resident taxpayers claiming an exemption under box #7 for IRC section 1031 and receiving non-like kind property (i.e. money, stocks, etc.) as well as like kind property (i.e. real estate) with the exchange, must fill out the GIT/REP-1, NON-RESIDENT SELLER’S TAX DECLARATION form showing the non-like kind amount, and remit an estimated tax payment on the Fair Market Value of the consideration received for the non-like kind property.  If no non-like property was received please check the block indicating such.

A third party (the accommodation party) for a deferred like-kind exchange must remit an estimated tax payment of 2% of the fair market value of the consideration received for the non-like kind property on behalf of the taxpayer if non-like property is received when the 1031 transaction is completed or remit 2% of the total consideration if the 1031 transaction is voided.  Payment must be sent directly to the State of New Jersey, Revenue Processing Center, P.O. Box 222, Trenton, NJ 08646-0222.  Please fill out GIT/REP-1 and NJ-1040-ES Voucher.

Complete a GIT/REP-3 AND GIT/REP-1. The GIT/REP-3 should show the value of the like kind exchange.  The GIT/REP-1 should show the Fair Market Value of or consideration received for the non-like kind property (whichever is more).

Example:  Mr. Smith exchanges rental property A with a fair market value of $1.2 million for rental property B with a fair market value of $1.0 million and receives $200,000 in cash (non-like kind property).  An estimated tax payment is required to be withheld on the $200,000 in consideration of non-like kind property for non-residents.

PROPERTY A    $1,200.000
PROPERTY B $1,000,000
CASH     $   200,000
Consideration for estimated tax
payment for GIT/REP-1  
$   200,000


Signature:  
Seller(s) must sign and date the declaration.  If the seller's representative is signing the declaration either (1) a Power of Attorney executed by the seller(s) to the representative must be previously recorded or recorded simultaneously with the deed to which this form is attached, or (2) a letter signed by the seller(s) granting authority to the representative to sign this form must be attached.

All information requested on this form must be completed. Failure to complete the form in its entirety will result in the deed not being recorded.

This form must be completed at the time of closing and given to the buyer or the buyer's attorney.

The buyer or buyer's attorney must submit the original Seller's Residency Certification/Exemption (GIT/REP-3) to the county clerk at the time of recording the deed. Failure to submit the Seller's Residency Certification/Exemption (GIT/REP-3) or Nonresident Seller's Tax Declaration (GIT/REP-1) or a Nonresident Seller's Tax Prepayment Receipt (GIT/REP-2) will result in the deed not being recorded.

The county clerk will attach this form to the deed when recording the deed.

Additional information regarding the Gross Income Tax estimated payment requirements on the sale of real estate can be found on the Division of Taxation’s web page at www.state.nj.us/treasury/taxation.