My parent lived in another state and owned a New Jersey house. What tax paperwork do I need to sell it?

The Division of Taxation's IT-NR instructions say a non-resident inheritance tax return must be filed when the decedent died owning an interest in New Jersey real estate, or tangible personal property located in New Jersey. A decedent with only bank accounts or stock in New Jersey, and no real estate, generally files nothing. The instructions also say there is no New Jersey estate tax for estates of non-resident decedents. The form edition I reviewed is dated 8-10, so confirm the current version with the Division.

The same instructions say the return must be filed and the tax paid within eight months after the death of a non-resident decedent. The tax is a lien on all New Jersey real property for fifteen years unless paid sooner or secured by an acceptable bond, and interest accrues on unpaid tax at 10 percent per year. A waiver is required for New Jersey real estate owned by a non-resident decedent, except for real estate owned by a married couple or civil union couple as tenants by the entirety.

When the entire estate, inside and outside New Jersey, passes to Class A beneficiaries such as a spouse, children or grandchildren, the instructions say there is no need to file the non-resident return. Because a waiver is still needed for the New Jersey real estate, Form L9-NR is filed to obtain it. The Division's filing page lists the companion form as IT-L-9 NR. A New Jersey estate attorney can confirm which applies to your family.

The IT-NR instructions describe four methods of computing the tax, and say the choice, once made, is irrevocable. The simplified method multiplies the total of the New Jersey assets by a 15 percent rate. Another method must be used if New Jersey real estate is specifically left to someone in a will or trust, or is held as joint tenants with right of survivorship. Because the choice cannot be undone, have the attorney run the numbers before filing.

You can handle much of this by phone and mail, but the deed still needs the right person's signature. Kaizen Home Buyers makes cash offers on New Jersey houses as-is, with no repairs and no agent commission, and that suits heirs who live far from the property. We can give an offer within 24 hours and close in 14 to 30 days or on the date you choose. Call 267-329-0084. Listing with a local agent is another route. Ask a New Jersey attorney to confirm the tax steps first.