New Jersey taxes capital gains as ordinary income, up to 10.75%. Stacked on federal capital gains and the 3.8% NIIT, a one-year sale can lose more than a third. Here's how to spread it across years.
A plain-English guide for sellers: how a structured installment sale defers the tax when you sell a business, practice, or property — the math, the alternatives, and how to know if your deal fits.
Drop your info — instant PDF download + within 1 business day Hans will email a preliminary read on which structure fits your deal. No retainer. Carrier compensates the broker — not you.
📞 Hans Goldstein · 213-290-4977 · CA Insurance License #4322192 · Independent §453 specialist · Goldstein & Co. LLC
New Jersey is among the highest-tax states in the country, and it gives capital gains no break, they're taxed as ordinary income up to 10.75%. Combine that with the federal rate (up to 20%) and the 3.8% NIIT, and selling a business, building, or appreciated asset can cost you more than a third of the gain in a single year.
Many New Jersey owners are already weighing whether to relocate to a lower-tax state. But you don't have to move to soften the tax on a sale, you can change when the gain is recognized.
A §453 structured installment sale spreads your proceeds, and the gain, over future years, keeping more of it in lower brackets, reducing the 3.8% surtax, and lowering the New Jersey tax in the deferred years. Payments are backed by an A-rated carrier, and because it's a federal statute it applies fully in New Jersey. No replacement property required, unlike a 1031.
In New Jersey, deferral is one of the most valuable moves a seller can make. See your number on the calculator, then structure the sale before you sign.
New Jersey taxes capital gains as ordinary income, up to 10.75% at the state level, on top of the federal rate (up to 20%) and the 3.8% NIIT. The combined burden can exceed a third of the gain.
Establishing residency in a no-tax state before a sale can avoid the state portion, but the federal tax and NIIT still apply, and states scrutinize residency changes around large sales. A structured installment sale reduces the tax without requiring a move.
A §453 structured installment sale spreads the proceeds and gain over multiple years, lowering the federal and New Jersey tax in the deferred years. It's a federal strategy that applies in New Jersey.
Yes for like-kind real estate if you reinvest within the deadlines. If you want to exit real estate, sell a business or stock, or can't find a replacement, a structured installment sale is the better fit.
Use the free calculator, select New Jersey, and it estimates federal + state + NIIT + recapture and the savings from deferring.
Before you sign anything, run your numbers with someone who structures the deal to be tax-smart and audit-ready from day one.
Call 213-340-2018 Run the Numbers →