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Printable Form 1120-H Newark New Jersey: What You Should Know

See FAQ 4 in the form letter you received with your tax return for more info. New Jersey has a three-tier structure of taxes based on where a person or company purchases their residential property, from what source, and how much they bought. This is not to be confused with the taxes levied on property purchased in another state that a New Jersey corporation maintains its legal residence in. For example, Delaware has a corporate tax model and New Jersey has a non-corporate tax model. Taxes are calculated from each individual's tax return and are based not only on where a residence is being located, but also the type of residence it is. Example: Joe and Jane and Joe's wife and their two children live in Lakewood.  Joe owns a residence in Lakewood for 1,500,000.00, and they buy a residence in New York City for 300,000.00. They would each be taxed on 700,000.00, regardless of whether Joe owns a state or city residence at the time the purchase transaction is made.

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