N.J. Admin. Code § 18:27-2.9

Current through Register Vol. 56, No. 21, November 4, 2024

Section 18:27-2.9 - Ownership of legal title; fractional interests

(a) A claimant must hold legal title to the property for which the deduction is claimed or a fractional, that is, partial ownership interest in the property. Where property title is held by a claimant and another, or others, as joint tenants or tenants in common, the interest of each tenant is treated as equal to that of the other, unless the deed specifically provides for unequal interests. Where the claimant and other owner are registered domestic partners and own the real property as joint tenants with right of survivorship and each partner has an ownership interest, then either may qualify for the property tax deduction for their proportionate share of the property taxes, if otherwise eligible. Where property title is held by husband and wife, or civil union partners, as tenants by the entirety, each spouse or civil union partner owns a full ownership interest, so that either may qualify for the full property tax deduction, if otherwise eligible. Each joint tenant or tenant-in-common may claim a deduction on his or her proportionate share of property taxes.

(b) For property having multiple owners each veteran claimant is eligible for his or her full property tax deduction provided his or her proportionate share of the property taxes paid equals or exceeds the full deduction amount.

Example: Four qualified veterans own a residential condominium unit as tenants in common which they bought for an investment. They each have a one quarter interest. If the total annual property taxes are $ 3,000, each has a tax obligation of $ 750.00. Each, therefore, is entitled to a $ 250.00 deduction. Net taxes due on the property are $ 2,000.

N.J. Admin. Code § 18:27-2.9

Amended by 46 N.J.R. 2281(c), effective 11/17/2014