Can I deduct out-of-state property taxes on my N.J. return?

Q. Can I deduct out-of-state property taxes on a summer-only cottage my New Jersey tax return? TurboTax shows yes, but I’ve seen conflicting information. I just want to do the right thing.— Taxpayer A. The new tax plan changed the way property taxes can be deducted. Property tax is deductible on all homes for federal purposes, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown. But now, they are subject to the $10,000 limit on state and local taxes. After the feds limited those taxes to $10,000, New Jersey took some steps to increase what you can deduct for your state return, but not for a second home. For New Jersey p

Are active duty military personnel exempt from the exit tax?

Q. Are active duty military personnel exempt from the 2 percent exit tax when they sell/transfer their former home in New Jersey? — Seller A. Your service won't exempt you from the so-called exit tax. But here’s the thing: the exit tax isn’t actually an extra tax. It’s an estimated tax payment. New Jersey residents who sell a home and maintain New Jersey residency file form GIT/REP-3 Seller’s Residency Certification/Exemption, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown. “The completed GIT/REP-3 form is due at closing and exempts the seller from paying the estimated income tax payment at that time,” Kiely said.

How long should I keep paperwork from my deceased relatives?

Q. My dad died in 2011 and my mother died in 2015. Do I need to keep Social Security cards, birth, death, marriage and baptism certificates? What about insurance papers? I also have personal papers, like the naturalization papers of my grandparents. What do I need to keep?— Organizing A. It’s great that you want to organize your financial records. Your recordkeeping system doesn’t need to be fancy, and there are some items you can toss. Here’s what you should know. Certain financial records should be kept after a person’s death, but not necessarily forever. Life insurance policy documents related to permanent coverage should be kept until the covered person dies and the insurance benefit is

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Kiely Capital Management offers financial planning and investment advice. Serving Central and Northern New Jersey, Yvonne and Bernard (Bernie) Kiely provide over 25 years of experience offering discretionary asset management, retirement planning and income tax preparation. KCM is registered with the State of New Jersey as a Registered Investment Advisor.

 

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