Legal Question in Tax Law in New Jersey

There has to be a NJ Income Tax Return filed, reporting the sale, as it is considered NJ source income. The payment you made at the time of sale will be considered a tax deposit, and the tax based upon the profit you realized (basis vs sales price). You may be entitled to a refund if the estimated tax was over-estimated, or still owe something if the deposit was understated. I can assit you and contact me directly if you need assistance.