My vacation home is now my primary home. What taxes are due when I sell?

Q. Say a couple has owned a vacation home for 20 years. They rented it out for a few years and used it for family only for the following 15 years. They sold their primary home three years ago and the vacation home is now their primary residence. Now they want to sell it and buy a larger home. What are the tax implications? — Homeowner A. There are several issues to consider here. Let’s take care of the easy part of the question first. When you sell your principal residence, you may be able to exclude up to $250,000 of gain, or $500,000 if married filing jointly, if you meet the so-called ownership and use tests, said Bernie Kiely, a certified financial planner and certified public accountant

I’m moving back to New Jersey. How will my pension be taxed?

Q. I am a former resident of New Jersey and I will be moving back with my wife next year. We are both retired teachers receiving pensions from Pennsylvania, which doesn’t tax pensions. How will New Jersey taxes affect our pensions? I am also collecting Social Security but my wife is not. — Concerned A. Welcome back to New Jersey. Depending on how much income you have, you may not be happy with changes to your tax situation. It’s true that Pennsylvania does not tax pension, IRA or 401(k) income and New Jersey does, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown. However, he said, New Jersey does have a limited “Pens

Will my retirement account stop me from getting unemployment benefits?

Q. Due to a workforce reduction, I was terminated by my former employer. Shortly after, I took my retirement account, fully funded by my former employer, in one lump sum and rolled it over to my IRA. Does this impact my eligibility to collect unemployment benefits? — Not working A. We’re sorry to hear about your job. To qualify for New Jersey Unemployment Benefits you must have lost your job through no fault of your own, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown. You must be able to work, are actively seeking work, are available for work and you cannot refuse an offer of suitable work, he said. “If you receive

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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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