I have to speak to a CPA and I will. But I have already seen examples of people who sell their home in New Jersey and then rent a place for the remainder of the year within the state. This permits an exclusion of $250,000 for single filers and $500,000 for couples.
I’ve always paid my fair share and have never been audited. This loss of the exclusion because of a move across a state line seems arbitrary.
I came across this article back in August and decided to save it. It might have some helpful information.
https://www.nj.com/news/2020/08/will-my-mom-owe-taxes-if-she-sells-her-home-and-leaves-nj.html
“
And the so-called
“exit tax” causes a lot of confusion for home sellers.
“Many believe that this is a tax imposed when you sell property in New Jersey and move out of state, but this is incorrect, said Joseph Sarnecki, a certified financial planner with U.S. Financial Services in Fairfield.
It is not an additional tax, but simply a pre-payment of
potential income tax based on the sale of the home, he said.
Specifically, New Jersey requires you to withhold the amount of either 8.97% — New Jersey's highest tax bracket — of the profit, or 2% percent of the total selling price, whichever is higher, he said.”
...
“This is basically New Jersey’s way of getting you to file a final tax return after leaving the state. It is not an extra tax.”
By all means talk to a CPA.