Recent NJ tax court case effects gains on real estate rentals

A recent NJ Appellate case(Moroney March 14,2005) upheld a taxpayer's calculation of gain on sale of rental real estate for NJ Tax purposes.

If a taxpayer does not receive any economic benefit from depreciation deductions (based on each year of rental operation), the unused depreciation is added back to basis for NJ purposes which in turn reduces NJ gain.

Please call or email our office for further information if you believe you may have this situation.