Can New Jersey Subject Estate Asset to Bulk Transfer Law?

HNWReal Estate, Landlord/Tenant, and Zoning

By Fredrick P. Niemann, Esq., a New Jersey Estate Administration and Probate Attorney

Here’s an interesting post I recently read:

The executor of a New Jersey Estate is selling a single family home owned and occupied by the decedent until she died.  The home has never been used in any way as a business.  The executor is selling the house at a price far below the value reported to the New Jersey inheritance tax bureau.  The Bulk Sales section and the taxation section of the NJ Dept. of the Treasury are taking the position that the house is a business sale even though New Jersey regulations exempt withholding tax for a New Jersey based estate.

My response starts with a question.  Was the property ever used for rental to others?  The Dept. of Revenue takes the position that if so, then the owner was a landlord in the business of renting property, so that the sale of that business’s asset (the property) is subject to the Bulk Sale requirements (notice and escrow, etc.)   Another example of greedy New Jersey taxing anything it can think of.

If you have any questions regarding New Jersey Bulk Sale Law, please contact Fredrick P. Niemann, Esq. today. He can be reached at toll free 1-888-800-7442 or by email at Mr. Niemann will be happy to meet with you to answer any questions you may have.

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