GIT/REP-1: Nonresident Seller's Tax Declaration (Revision 2021-10)

Who files this form

A nonresident individual, estate, or trust selling or transferring New Jersey property must make an estimated Gross Income Tax payment unless they:

• Meet an exemption using Form GIT/REP-3.
• Qualify for a waiver using Form GIT/REP-4.
• Have a corrective deed with no additional consideration, using Form GIT/REP-4A.

Use GIT/REP-1 when making the estimated payment at closing. The form also describes a prepayment option using GIT/REP-2 before closing.

Part-year residents are considered nonresidents.

What you'll need

Have these records and details ready:

• The seller’s name and primary residence or business address.
• The property deed, including the block, lot, qualifier, and property address.
• The seller’s ownership percentage, total consideration, seller’s share of consideration, and closing date.
• The seller’s Social Security number or federal tax identification number for the estimated tax voucher.
• The gain from the sale and consideration received to calculate the payment.
• A check or money order for the required estimated tax payment.

If a representative signs, the seller’s power of attorney must already be recorded or be recorded with the deed, or a signed letter from the seller authorizing the representative to sign must be attached.

A foreign national seller without a Social Security number or federal tax identification number must complete a pro-forma W-7 and attach it to the voucher, even if the seller was not required to submit a W-7 to the IRS.

How to file

1. Print or type the seller and property information. Complete the entire form and estimated tax voucher, and sign and date the Seller’s Declaration.
2. Make the check or money order payable to State of New Jersey – Division of Taxation. Include your Social Security number on the payment to ensure proper credit.
3. At closing, give the completed GIT/REP-1 and required estimated payment to the settlement agent, usually the buyer’s attorney or title company.
4. The settlement agent files the original GIT/REP-1, payment, and deed with the appropriate county clerk for recording.
5. The county clerk attaches the top portion to the recorded deed and mails the bottom payment voucher and payment to:

State of New Jersey

Division of Taxation

Revenue Processing Center

PO Box 222

Trenton, NJ 08646-0222

Keep a copy of the submitted GIT/REP-1 and proof of payment.

Prepayment option: Before closing, you may submit GIT/REP-2, the estimated payment, and the NJ-1040-ES GIT/REP-1 payment voucher to one of the Division’s Regional Information Centers.

Common mistakes

• Leaving the form incomplete. The county clerk will not record the deed unless the form is completed in its entirety.
• Using the property being sold as the seller’s address. Enter the seller’s primary residence or place of business instead.
• Omitting the original form or payment when submitting the deed. The county clerk will not record the deed if the settlement agent does not submit both with it.
• Leaving your Social Security number off the check or money order. The form reminds you to include it so the payment is properly credited.
• Failing to keep records. Keep a copy of the submitted GIT/REP-1 and proof of payment.
• Making a false statement. The declaration warns that false statements may be punished by a fine, imprisonment, or both.

Questions people ask

How is the estimated payment calculated?

Multiply the gain from the sale by 10.75%. The estimated payment cannot be less than 2% of the consideration received for the sale. Estates and trusts determine the gain without taking into account distributions to beneficiaries during the tax year.

What does “consideration” mean?

It includes money and the monetary value of other compensation paid or to be paid for the transfer. It also includes remaining mortgage amounts to which the transfer is subject or that the buyer assumes, and other liens or encumbrances not paid, satisfied, or removed with the transfer. If there is more than one owner, report the seller’s share of the total consideration.

What if the total consideration is $1,000 or less?

Complete Form GIT/REP-3, Seller’s Residency Certification/Exemption, and check box 6 under Seller’s Assurances.

Does each seller need a separate form?

Yes, unless the sellers are a married or civil union couple who file their Income Tax returns jointly.

Can someone sign for the seller?

Yes. The seller’s power of attorney must have been recorded previously or be recorded with the deed, or a letter signed by the seller authorizing the representative to sign the form must be attached.

Official sources

• https://www.nj.gov/treasury/taxation/pdf/other_forms/tgi-ee/gitrep1.pdf