1031 Exchanges Exempt from NJ Non-Resident Withholding Tax
The tax law effective August 1, New Jersey P.L. 2004, C.55 (N.J.S. 54A:8-10), which demanded real estate tax withholding from nonresident New Jersey sellers, no longer applies to sellers in a §1031 exchange.
The new Seller’s Residency Certification/Exemption form (effective October 8, 2004) now includes exemption # 7, which applies to 1031 exchanges and other transactions not subject to Federal Income tax under I.R.C. Section 721