Taxation in New Jersey

Dedicated and caring service to our clients is the primary goal of the law firm of Ferrara, Turitz, Harraka & Goldberg, PC. To consistently reach this goal, our NJ Tax attorneys not only keep current on taxation in New Jersey, but also to keep ahead of the game with regard to tax code revisions, tax law changes, and court decisions regarding taxes.

Our attorneys know exactly when certain tax changes will become effective. We use that information to plan ahead to protect your business and personal interests regarding New Jersey taxation matters. Some recent changes that affect the state New Jersey taxation climate appear below.

Your Estate Plan and 2011 Tax Law Changes

President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 in December of 2010. This Act reduces the estate tax, gift tax, and generation skipping tax for deaths or transfers of assets in 2011 and 2012 only.  It expires at the end of 2012 when taxes revert to higher levels.

Estate Tax Law Changes

The government increased the federal estate tax exemption amount to $5,000,000 per person for deaths in 2011 and 2012. Also included is a new provision, stating that if one spouse does not fully use his or her federal estate tax exemption amount, then the surviving spouse can acquire that amount upon his or her death.

Gift Tax Law Changes

The Fed also increased the lifetime gift tax exemption amount to $5,000,000 per person and decreased the gift tax rate to 35 percent for tax years 2011 and 2012 only.

For clients with significant assets or closely held businesses, this increase creates an opportunity to transfer assets at little or no transfer tax costs. For older clients who want to transfer large portions of their assets to their children, this is a chance to make those transfers on a federal transfer tax-free basis, and possibly reduce state of New Jersey taxation on estate taxes.

Generation Skipping Tax Law Changes

The 2010 Act increases the generation skipping tax exemption amount to $5 million per person for deaths or gifts in 2011 and 2012 only. It is applicable to lifetime gifts or transfers at death.

Governor Christie Intends to Make New Jersey a Better Place to Die

Governor Christie’s budget proposal recommends increasing the New Jersey estate tax exemption amount from $675,000 per person to $1 million per person. This represents the amount of money one person can leave another upon death without paying estate taxes to the New Jersey Taxation Division. Monies left to a spouse or a charity are exempt from this tax.

Contact Us

If you need a New Jersey tax attorney who listens to your concerns and provides the necessary experience and expertise to assist you in obtaining the results you seek, contact Ferrara, Turitz, Harraka & Goldberg, PC.