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April 21, 2021
Question

capital gains - state allocation

  • April 21, 2021
  • 1 reply
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I reside in Florida but work the summer months in New Jersey.  Are stock trades (and thus gains)  that I make while I am working in New Jersey subject to NJ taxes?

    1 reply

    DMarkM1
    April 21, 2021

    No.  It appears you meet the definition of non-resident for NJ.  Your domicile is FL and you spend less than 183 in NJ.  Therefore, you should be filing a non-resident return for NJ income earned while physically in NJ.  The other income/gains are allocated to your resident state.  

     

    Here is a list of items of non-resident income subject to NJ tax.

     

    Income of a Nonresident Subject to NJ Tax. Some examples of income taxable to a nonresident include:

    1. Wages, salaries, tips, fees, commissions, bonuses and other payments received, whether in cash or in property, for services performed in New Jersey;

    2. Profits and other income from a business, trade, profession or partnership conducted in New Jersey;

    3. Rents or royalties from real and tangible personal property located in New Jersey or from other business activities in New Jersey;

    4. Gains from the sale of your principal residence or other real estate located in New Jersey;

    5. Winnings from a casino or racetrack located in New Jersey;

    6. Prizes won in a lottery, drawing or other contest in New Jersey (other than the New Jersey Lottery);

    7. Income of a New Jersey S corporation allocated to New Jersey.

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