Question:

How does this couple receive their holdback money back from a house sale?

by  |  earlier

0 LIKES UnLike

A couple sold their principal residence (in NJ) in 2008 while residents of SC. The HUD shows the government charged a 'non resident holdback' of $10000. They should not have to pay capital gains on the sale. How do they claim this money?

 Tags:

   Report

3 ANSWERS


  1. I had the same problem selling a rental in California.  You file a return.  It is just like withholding tax from wages and is a prepayment of estimated taxes due and can be refunded if the estimate was too high.  


  2. They get *some* of the money back when they file their SC tax return.

    Many people forget that property is sourced by it's location and forget to file the other state's return.  When money is withheld at time of sale, they seem to suddenly remember.

  3. If this was for income taxes a From 1099 will be issued showing the tax withheld.  They'll claim that on their tax return next year and any excess will be refunded.  It's highly unusual for tax to be withheld from the proceeds on the sale of a home.  They must have failed or refused to complete the paperwork regarding the tax aspects of the sale or failed or refused to give their SSN when asked.  Those are the only reasons that taxes would have been withheld.

Question Stats

Latest activity: earlier.
This question has 3 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.