Finance
A non-resident seller of NJ real property is subject to NJ non-resident withholding at closing. This withholding is:
AA final tax with no ability to claim a refund
BAn estimated payment toward NJ income tax that may be reconciled on the seller's tax return✓ Correct
CPaid by the buyer
DWaived if the property is sold at a loss
Explanation
NJ non-resident withholding (GIT/REP) is an estimated income tax payment collected at closing for non-resident sellers. It is credited against the seller's NJ tax liability and may be refunded if the actual tax is lower.
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