Are you wondering about estate liquidation tax exemption in NJ? The New Jersey Transfer Inheritance and Estate Tax law highlight twelve exemptions in the IR-R Inheritance Tax Resident Return (9-11). These relate to, amongst others, the transfer of real and personal property between spouses and the transfer of intangible personal property of a nonresident decedent (deceased person).
Besides tax exemptions, there are also tax waivers and tax exceptions that impact an estate. But what is the inheritance tax, and how much tax must beneficiaries pay?
What is the inheritance tax?
The inheritance tax amount depends on the inheritance value and in which class of inheritance tax the beneficiary falls. A graduated transfer inheritance tax is imposed on real and personal property.
Real property is real estate, thus land and/or physical buildings that are permanent structures on the land. Personal property is tangible or intangible. Tangible personal property has a physical form and includes jewelry, antiques, furniture and cars. Intangible property does not have a physical form and includes bank accounts, stocks and bonds.
New Jersey’s Death Tax
In New Jersey, Inheritance Tax was a credit against the Estate Tax (or Death Tax), and the estate paid only the higher of the two. As of January 1, 2018, the New Jersey Estate Tax is no longer imposed on individuals who die on or after that date.
Class A, C, D, E Inheritance Taxes
There are four recognized active classes of beneficiaries which are A, C, D and E. Class B was eliminated effective July 1, 1963.
|Class||Type of beneficiary (transferee)||Tax rates|
|A||Spouse, child, parent, grandparent, grandchild etc.||Full exemption from paying tax.|
|C||Brother, sister, spouse of a child etc.||First $25,000 – exempt
Next $1,075,000 – 11%
Next $300,000 – 13%
Next $300,000 -14%
Over 1,700,00 – 16%
|D||Anyone not included in classes A, C and E.||First $700,000 – 15%
Over $700,000 – 16%
|E||Qualified charities, religious institutions etc.||As per law for each beneficiary.|
The information provided here is applicable at the time of this post in 2022. We encourage you to check with your local tax codes and research the most up-to-date tax laws as things change frequently.
Jerry’s Antiques and Estate Sales serves all of New Jersey and is fully insured. His services include real estate liquidation, full liquidation of contents, professional appraisals, broom swept clean-outs, private sales of a few items, and estate sales. Do you need information about estate liquidation tax exemption in NJ? Please consult with a trusted tax advisor. Do you need help with an estate sale? Contact Jerry, your estate tag sales expert, for further information.