Capital Gains Tax Services in New Jersey

Capital gains tax is a tax on the profit you earn when you sell an asset for more than you paid. This applies to various assets, including stocks, real estate, and business interests. The tax rate depends on how long you've held the asset before selling it.

Short-Term vs. Long-Term Capital Gains

• Short-Term Capital Gains: If you sell an asset you've held for one year or less, the profit is considered a short-term capital gain. These gains are taxed at your ordinary income tax rate, ranging from 10% to 37% at the federal level. 
• Long-Term Capital Gains: If you sell an asset you've held for over a year, the profit is considered a long-term capital gain. Depending on your taxable income, these gains are taxed at reduced rates of 0%, 15%, or 20%. 

Understanding the distinction between short-term and long-term capital gains is crucial, as it significantly impacts the amount of tax you owe.

How Capital Gains Tax Works in New Jersey

In New Jersey, capital gains are taxed as ordinary income, meaning they are subject to the same tax rates as your other income. The state does not differentiate between short-term and long-term capital gains; all are included in your gross income for tax purposes. 

New Jersey Income Tax Rates (2025)

New Jersey's income tax system is progressive, with rates increasing based on income levels. As of 2025, the tax brackets for single filers are:

• 1.4% on income up to $20,000
• 1.75% on income between $20,001 and $35,000
• 3.5% on income between $35,001 and $40,000
• 5.525% on income between $40,001 and $75,000
• 6.37% on income between $75,001 and $500,000
• 8.97% on income between $500,001 and $1,000,000
• 10.75% on income over $1,000,000

These rates apply to your total taxable income, including any capital gains. 

Federal Capital Gains Tax

At the federal level, capital gains are categorised as either short-term or long-term:

• Short-Term Capital Gains: Gains from assets held for one year or less are taxed at your ordinary income tax rate, up to 37%, depending on your income.
• Long-Term Capital Gains: Gains from assets held for more than one year are taxed at reduced rates of 0%, 15%, or 20%, based on your taxable income.

Additionally, high-income earners may be subject to a 3.8% Net Investment Income Tax on capital gains.

Combined Tax Impact

You may owe federal and state taxes when selling an asset and realising a capital gain. For example, if you're a New Jersey resident in the highest tax bracket and realise a long-term capital gain, you could face a combined tax rate of up to 30.55% (20% federal long-term capital gains tax + 3.8% Net Investment Income Tax + 10.75% New Jersey income tax).

Understanding how capital gains are taxed in New Jersey and at the federal level is crucial for effective tax planning.

At GTA Accounting Group, we provide expert guidance on capital gains tax matters for a diverse range of clients in New Jersey. Our personalized approach ensures that each client's unique financial situation is addressed with precision and care.

Homeowners Selling Property

Understanding the tax implications is crucial for selling your primary residence or investment property. We assist homeowners in ASPCA.

• Determining eligibility for the primary residence exclusion (up to $250,000 for single filers and $500,000 for married couples filing jointly).
• Calculating capital gains accurately, considering improvements and selling expenses.
• Navigating the New Jersey "exit tax" requirements for nonresidents.

Investors Liquidating Assets

Whether you're selling stocks, bonds, or other investments, we help investors:

• Understand the differences between short-term and long-term capital gains.
• Implement tax-loss harvesting strategies to offset gains.
• Plan the timing of sales to minimize tax liabilities.

Business Owners Exiting or Selling Assets

Selling a business or its assets involves complex tax considerations for entrepreneurs and business owners. We provide support in.

• Structuring sales to optimize tax outcomes.
• Understanding the implications of selling different business entities (e.g., S corporations, partnerships).
• Utilising available deductions, such as those related to Qualified Small Business Stock (QSBS).

High-Net-Worth Individuals and Retirees

Managing significant assets requires careful tax planning. We assist high-net-worth clients and retirees in:

• Developing strategies to minimize capital gains taxes.
• Coordinating with estate planning to ensure tax-efficient wealth transfer. Utilizing tax-advantaged accounts to defer or reduce taxes.

Our team at GTA Accounting Group is committed to providing tailored solutions that align with your financial goals and is dedicated to delivering customized solutions that meet your financial objectives. Dedicated to providing personalized solutions that align with your financial objectives

Selling real estate in New Jersey—whether it's your primary residence, a rental property, or a vacation home—can have significant tax implications. Understanding how capital gains tax applies to these transactions is essential to avoid unexpected liabilities.

Primary Residence Exclusion

If you're selling your primary residence, you may qualify for a substantial exclusion on capital gains:

• Single Filers: Up to $250,000 of gain can be excluded.
• Married Filing Jointly: Up to $500,000 of gain can be excluded.

To qualify, you must have owned and lived in the home as your primary residence for at least two of the five years preceding the sale.

Investment and Rental Properties

For properties not used as your primary residence, such as rentals or vacation homes, the primary residence exclusion does not apply. Gains from the sale of these properties are fully taxable. However, you can reduce your taxable gain by accounting for the New Jersey State Official Site.

• Adjusted Basis: Include the original purchase price plus the cost of improvements and certain expenses.
• Depreciation: Subtract any depreciation claimed when the property was used for business or rental purposes.

It's important to note that depreciation recapture rules may apply, taxing the depreciation deductions you've previously taken at a higher rate.

New Jersey "Exit Tax"

If you're a nonresident selling property in New Jersey, the state requires an estimated tax payment at closing, commonly referred to as the "exit tax." It is not an additional tax but a prepayment of your estimated tax liability. The amount is the greater of:

• 8.97% of the gain from the sale, or
• 2% of the total consideration (sale price).

Certain exemptions, such as if the property was your primary residence and you meet specific criteria, may apply.

Navigating the complexities of real estate capital gains in New Jersey requires careful planning and understanding of both federal and state tax laws.

At GTA Accounting Group, managing capital gains tax can be a complex and time-consuming process. Our team of experienced professionals is here for comprehensive support tailored to your unique financial situation. Personalized Tax Planning

We thoroughly analyze your financial portfolio to identify potential capital gains and tax liabilities. Our experts then develop customized strategies to help minimize your tax burden, such as timing asset sales to align with favourable tax periods and utilizing tax-advantaged accounts.

Accurate Reporting and Compliance

Ensuring compliance with both federal and New Jersey state tax laws is crucial. Our team assists you in accurately calculating your capital gains, preparing necessary tax forms, and filing them promptly to avoid penalties.

Real Estate Transactions

If you're involved in real estate transactions, we provide specialized guidance on the New Jersey "exit tax" for nonresidents and the implications of selling investment properties. We aim to help you navigate these transactions smoothly while optimizing your tax outcomes.

Ongoing Support

Tax laws and regulations are subject to change, and your financial circumstances may also change and evolve over time. We offer continuous support to keep you informed about relevant changes and help you adjust your tax strategies accordingly.

By partnering with GTA Accounting Group, we inform you of a team committed to helping you manage your capital gains tax obligations effectively and efficiently.

Selecting the right accounting partner is crucial for effectively managing your capital gains tax obligations. GTA Accounting Group offers local expertise, personalized service, and a proven track record to support your financial goals in New Jersey.

Local Expertise with a Personalized Approach

Our team has extensive knowledge of New Jersey's tax laws and regulations, ensuring accurate and compliant services. We provide personalized advice tailored to your financial situation, helping you make informed decisions. 

Comprehensive Services for Diverse Needs

Whether you're an individual investor, a homeowner, or a business owner, our services are designed to meet your unique needs. From tax preparation and planning to audit representation and financial consulting, we offer a full suite of services to manage your capital gains tax effectively.

Proven Track Record

Our clients trust GTA Accounting Group because we deliver results. For example, we assisted a small retail business in New Jersey with comprehensive state tax planning, resulting in over $15,000 in tax savings and streamlined compliance processes. 

Technology-Driven Solutions

We leverage technology to enhance your financial experience. Our digital platforms and mobile apps are secure and user-friendly, making it easy to manage your finances and stay informed about your tax obligations.

By partnering with GTA Accounting Group, you can access a team committed to providing reliable, personalized capital gains tax services in New Jersey.

Managing capital gains tax in New Jersey can be complex, but you don't have to navigate it alone. At GTA Accounting Group, we're committed to providing personalised, expert guidance tailored to your unique financial situation.

Ready to manage your capital gains tax obligations? Contact GTA Accounting Group today to schedule a consultation. Our team is here to assist you every step of the way.

Let us help you navigate the complexities of capital gains tax and confidently achieve your financial goals.