IT-NR Inheritance Tax

Non-Resident Return
(8-10)

Transfer Inheritance Tax Non-

Resident Decedent
New Jersey Division of Taxation Inheritance and Estate Tax
PO Box 249
Trenton, New Jersey 08695-0249
(609) 292-5033

Do not file this form if you are a surviving spouse or a surviving civil union partner, and
the New Jersey real property was owned by you and the decedent as tenants by the entirety.
An Inheritance tax waiver is not necessary and will not be issued.
Situations where a Non-Resident Inheritance Tax Return
must be filed:
1. Non-resident decedent died owning an interest in New Jersey real estate.

2. Non-resident decedent died owning tangible personal property located in New Jersey.

Note: Please read items 2 and 3 below for exceptions.

Situations where a Non-Resident Inheritance Tax Return is

not required to be filed:
1. If a non-resident decedent died owning only intangible personal property in New
Jersey such as bank accounts, stock, etc and did not own any real estate or
tangible personal property in New Jersey, no forms are required to be filed.
There is no New Jersey Inheritance Tax. See Question 28 of New Jersey Non-
Resident Inheritance Tax frequently asked questions on the Division’s website for
information on how to closea New Jersey bank account or sell New Jersey
stock without a waiver.

2. If a non-resident decedent died owning only New Jersey real estate held as
tenants by the entirety between husband and wife or civil union couple (for
dates of death after February 18, 2007) and the spouse or civil union partner
survived the decedent there is no Inheritance Tax and it is not necessary to
file any forms. A tax waiver is not required for real property held as tenants
by the entirety.

3. If the entire estate both inside of New Jersey and outside of New Jersey is
being inherited by Class “A” beneficiaries, the most common of which are
spouse, children, grandchildren (see page 2 for a complete list of Class “A”
beneficiaries), there is no need to file the Non-Resident Inheritance Tax Return.
Since an Inheritance Tax waiver is needed for the New Jersey real estate, Form
L9-NR should be filed to obtain said waiver.

New Jersey Non-Resident Inheritance Tax Most Frequently

Asked Questions can be found on the Division’s Website
@ http://www.state.nj.us/treasury/taxation/prntinh.shtml

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There is no New Jersey Estate Tax for the estates of
non- resident decedents.
 TABLE OF CONTENTS

SUBJECT PAGE(S)

1. Classes of Beneficiaries…........................................2

2. Tax Rates….......................................2

3. Exemptions………………………..……………......2, 3

4. Where to File…..................................3

5. Waivers….............................................4

6. Amending the Return…............................4

7. Methods of Filing a Return…………………..……..5, 6

8. Items to Submit with the Return…......................7

9. Making Payments on Account…..........................7

10. Tax Computation Worksheets….........................8-13

11. Non-Resident Inheritance Tax Return...IT-NR Page 1

&
Schedules A-F

12. Examples – Including Completed Worksheets… 14-21

Completed New Jersey Page 1

Non-Resident Inheritance Tax
Returns and Worksheets can be found on the Division’s
Website
 INTRODUCTION
NEW JERSEY TRANSFER INHERITANCE TAX - ESTATE TAX
GENERAL
New Jersey has had a Transfer Inheritance Tax since 1892 when a 5% tax was imposed on property transferred from a decedent
to a beneficiary. Currently, the law imposes a graduated Transfer Inheritance Tax ranging from 11% to 16% on the transfer of real and
personal property with a value of $500.00 or more to certain beneficiaries. There is no New Jersey Estate Tax for the estates of non-
resident decedents.
BENEFICIARY CLASSES The issue of stepchildren ARE Class “D” (NOT Class “A”)
The Transfer Inheritance Tax recognizes five beneficiary classes, beneficiaries.
as follows: The following ARE Class “D” (NOT Class “C”)
Class “A” - Father, mother, grandparents, spouse/civil union beneficiaries: stepbrother or stepsister of the decedent,
partner (on or after 2/19/07), domestic partner (on or after husband/wife/civil union partner/domestic partner or
7/10/04), child or children of the decedent, adopted child or widow/widower/surviving civil union partner/surviving domestic
children of the decedent, issue of any child or legally adopted child partner of a step-child or mutually acknowledged child of the
of the decedent and step-child but not step-grandchild of the decedent.
decedent. The fact that a beneficiary may be considered “nonprofit” by
Class “B” - Eliminated by statute effective July 1, 1963. the Internal Revenue Service does not necessarily mean that it
Class “C” - Brother or sister of the decedent, including half qualifies for exemption as a Class “E” beneficiary since the criteria
brother and half sister, wife/civil union partner (on or after are different.
2/19/07) or widow/surviving civil union partner (on or after TAX RATES
2/19/07) of a son of the decedent, or husband/civil union partner
Each class of beneficiary has is own separate tax rate. See the
(on or after 2/19/07) or widower/surviving civil union partner (on
or after 2/19/07) of a daughter of the decedent. Rate Schedule below:
Class “D” - Every other transferee, distributee or beneficiary who
is not included in Classes “A”, “C” or “E”. CLASS “A” AND “E” BENEFICIARIES AND TRANSFEREES
Class “E” - The State of New Jersey or any political subdivision ARE ENTIRELY EXEMPT
thereof, or any educational institution, church, hospital, orphan
asylum, public library or Bible and tract society or to, for the use CLASS “C” BENEFICIARIES AND TRANSFEREES
of or in trust for religious, charitable, benevolent, scientific,
literary or educational purposes, including any institution First $ 25,000 Exempt
instructing the blind in the use of dogs as guides, no part of the net Next 1,075,000 11%
earnings of which inures to the benefit of any private stockholder
Next 300,000 13%
or other individual or corporation; provided, that the exemption
does not extend to transfers of property to such educational .
30 0,000 14%
Next
institutions and organizations of other states, the District of Over 1,700,000 16%
Columbia, territories and foreign countries which do not grant an
equal, and like exemption on transfers of property for the benefit
CLASS “D” BENEFICIARIES AND TRANSFEREES
of such institutions and organizations of this State.
NOTES: If any beneficiary is claimed to be the mutually First $ 700,000 15%
acknowledged child of the decedent, said claim should be set forth
Over 700,000 16%
in the detailed manner prescribed under N.J.A.C. 18:26-2.6.
For the purposes of the New Jersey Transfer Inheritance Tax
an adopted child is accorded the same status as a natural child and, EXEMPTIONS
therefore, his relations are treated in the same manner as those of a 1. The transfer of real property in this State held by a husband
natural child. (i.e. if the decedent’s adopted son marries/enters into and wife/civil union couple as “tenants by the entirety” to the
a civil union, his spouse/civil union partner is “the wife/civil union surviving spouse/civil union partner is not taxable for New
partner of a son of the decedent” and therefore a class “C” Jersey Inheritance Tax purposes.
beneficiary).
The offspring of a biological parent conceived by the artificial 2. The transfer of intangible personal property such as stocks,
insemination of that parent who is a partner in a civil union is bonds, corporate securities, bank deposits and mortgages
presumed to be the child of the non-biological partner. In the owned by a nonresident decedent is not subject to the New
Matter of the Parentage of the Child of Kimberly Robinson, 383 Jersey Inheritance Tax. However, it is used to compute the
N.J. Super. 165; 890 A.2d 1036 (Ch. Div. 2005) (Non-biological New Jersey resident tax on the appropriate worksheet.
parent of New York registered domestic partnership recognized in 3. Any sum recovered under the New Jersey Death Act as
New Jersey, presumed to be the biological parent of child compensation for wrongful death of a decedent is not subject
conceived by the other partner through artificial insemination to the New Jersey Inheritance Tax except as provided below:
where the non-biological partner has "show[n] indicia of
a. Any sum recovered under the New Jersey Death Act
commitment to be a spouse and to be a parent to the child.").
representing damages sustained by a decedent between the
A devise of real property to a husband and wife or civil union
date of injury and date of death, such as the expenses of
couple as “tenants by the entirety” provides each with a vested life
care, nursing, medical attendance, hospital and other
estate, the remainder being contingent. See N.J.A.C. 18:26-8.12.
charges incident to the injury, including loss of earnings

2
 and pain and suffering are to be included in the decedent’s any decedent composed of property, when such property was
estate. received by the decedent before death.
b. Where an action is instituted under the New Jersey Death 9. The proceeds of any pension, annuity, retirement allowance,
Act and terminates through the settlement by a compromise return of contributions or benefit payable by the Government
payment without designating the amount to be paid under of the United States pursuant to the Civil Service Retirement
each count, the amount which must be included in the Act, Retired Serviceman’s Family Protection Plan and the
inheritance tax return is an amount, to the extent recovered, Survivor Benefit Plan to a beneficiary or beneficiaries other
which is equal to specific expenses related to the injury. than the estate or the executor or administrator of a decedent
These expenses are similar to those mentioned in section a. are exempt.
above and include funeral expenses, hospitalization and
10. All payments at death under the Teachers Pension and Annuity
medical expenses, and other expenses incident to the injury.
Fund, the Public Employees’ Retirement System for New
Any amount which is recovered in excess of these expenses
Jersey, and the Police and Firemen’s Retirement System of
is considered to be exempt from the tax.
New Jersey, and such other State, county and municipal
4. The proceeds of any contract of insurance insuring the life of a systems as may have a tax exemption clause as broad as that of
resident or nonresident decedent paid or payable, by reason of the three major State systems aforementioned, whether such
the death of such decedent, to one or more named beneficiaries payments either before or after retirement are made on death to
other than the estate, executor or administrator of such the employee’s estate or to his specifically designated
decedent are exempt for New Jersey Inheritance Tax purposes. beneficiary, are exempt from the New Jersey Inheritance Tax.
5. The transfer of property to a beneficiary or beneficiaries of a The benefit payable under the supplementary annuity plan of
trust created during the lifetime of a resident or nonresident the State of New Jersey is not considered a benefit of the
decedent, to the extent such property results from the proceeds Public Employee’s Retirement System and is taxable whether
of any contract of insurance, insuring the life of such decedent paid to a designated beneficiary or to the estate.
and paid or payable to a trustee or trustees of such by reason of
The death benefits paid by the Social Security Administration
the death of such decedent, is exempt from the New Jersey
or railroad Retirement Board to the spouse of a decedent are
Inheritance Tax irrespective of whether such beneficiary or
also exempt. For purposes of filing a return these amounts
beneficiaries have a present, future, vested, contingent or
need not be reported nor are they to be deducted from the
defeasible interest in such trust.
amount claimed as a deduction for funeral expenses.
6. The transfer of life insurance proceeds insuring the life of a
resident or nonresident decedent, paid or payable by reason of In all other cases the death benefit involved should either be
the death of such decedent to a trustee or trustees of a trust reported as an asset of the estate or deducted from the amount
created by such decedent during his lifetime for the benefit of claimed for funeral expenses.
one or more beneficiaries irrespective of whether such 11. Other pensions. An exemption is provided for payments from
beneficiaries have a present, future, vested, contingent or any pension, annuity, retirement allowance or return of
defeasible interest in such trust, is exempt from the New contributions, which is a direct result of the decedent’s
Jersey Inheritance Tax. employment under a qualified plan as defined by section
7. The transfer, relinquishment, surrender or exercise at any time 401(a), (b), and (c) or 2039(c) of the Internal Revenue Code,
or times by a resident or nonresident of this State, of any right which is payable to a surviving spouse or domestic partner.
to nominate or change the beneficiary or beneficiaries of any 12. The amount payable by reason of medical expenses incurred as
contract of insurance insuring the life of such resident or a result of personal injury to the decedent should be reflected
nonresident, regardless of when such transfer, relinquishment, by reducing the amount claimed for medical expenses as a
surrender or exercise of such right occurred, is exempt from result of the accident.
the tax. The amount payable at the death of an income producer as a
8. Any amount recovered (under the Federal Liability for Injuries result of injuries sustained in an accident, which are paid to the
to Employees Act) for injuries to a decedent by the personal estate of the income producer, is reportable for taxation. In all
representative for the benefit of the classes of beneficiaries other instances this amount is exempt.
designated in that Statute, whether for the pecuniary loss The amount paid at death to any person under the essential
sustained by such beneficiaries as a result of the wrongful services benefits section is exempt from taxation.
death of the decedent or for the loss and suffering by the
decedent while he lived, or both is not subject to the The claim for funeral expense is to be reduced by the amount
Inheritance Tax. paid under the funeral expenses benefits section of the law.
Any amount recovered by the legal representatives of any
decedent by reason of any war risk insurance certificate or WHERE TO FILE
policy, either term or converted, or any adjusted service All returns should be sent to: New Jersey Division of
certificate issued by the United States, whether received Taxation, Inheritance and Estate Tax, PO Box 249, Trenton, New
directly from the United States or through any intervening Jersey 08695-0249.
estate or estates, is exempt from the New Jersey Inheritance
Tax.
This exemption does not entitle any person to a refund of any
tax heretofore paid on the transfer of property of the nature
aforementioned; and does not extend to that part of the estate
of

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 WHEN TAX RETURNS ARE DUE A membership certificate or stock in a cooperative housing
A Transfer Inheritance Tax Return must be filed and the tax corporation is considered intangible personal property and,
paid on the transfer of real and personal property within eight therefore, is not subject to tax or waiver requirements in the estate
months after the death of a nonresident decedent. No tax is of a non-resident decedent.
imposed on non-resident decedents for real and tangible personal Waivers are not required for automobiles, bank accounts,
property located outside of New Jersey and intangible personal stocks, household goods, personal effects, accrued wages or
property wherever situated. However, even though these items are mortgages, but these items must be reported in the return filed.
not taxed they are used in the formula for computing the
nonresident tax (see the “N.J. Resident Tax” line on each tax
AMENDMENT TO ORIGINAL RETURN
computation worksheet).
Any assets and/or liabilities not originally disclosed in the
The tax is a lien on all New Jersey real property for fifteen original return may be filed by notarized letter and submitted to the
years unless paid sooner or secured by an acceptable bond. Interest Branch. The letter should include a detailed description of the asset
accrues on unpaid taxes at the rate of 10% per annum. that is now being reported or verification of a claim that is now
WAIVERS being made. Also advise the reason that the item was not reported
A waiver is required for New Jersey real estate owned by a in the original return.
nonresident decedent except if the real estate is owned by a ESTATE TAX
husband and wife/civil union couple as “tenants by the entirety”.
There is no New Jersey Estate Tax for the estate of non-
resident decedents.

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 METHODS OF FILING

Four methods may be used to compute the Inheritance Tax on the New Jersey Non-
Resident Return. An election once made may not be changed and is irrevocable.

 METHOD 1 – SIMPLIFIED TAX COMPUTATION

 METHOD 2 - RATIO TAX USING NET ESTATE

 METHOD 3 - RATIO TAX USING GROSS ESTATE

 METHOD 4 - DIRECT TAX ON SPECIFIC DEVISE, JOINTLY OWNED

AND TRANSFERS OF NEW JERSEY REAL AND TANGIBLE PERSONAL
PROPERTY

 METHOD 1 – SIMPLIFIED TAX COMPUTATION

This is an optional method. It can be used instead of any of the above methods. Method 1 requires
the least amount of paperwork. Page 1 of the Inheritance Tax Return and the appropriate schedule
are the only items required to be completed. The tax is computed by multiplying the total of the
New Jersey assets by a 15% tax rate. Complete only the schedule which applies to the asset being
reported and answer the first 4 questions of Schedule “E”.
Use worksheet 1. See example on pages 14 and 16.

In the event all beneficiaries are Class “A” (see page 2 for a list of Class “A” beneficiaries)
Form L9-NR should be used as Class “A” beneficiaries are not subject to tax.

 METHOD 2 - RATIO TAX USING NET ESTATE

This method requires that all of the decedent’s assets be reported on the various schedules. This
includes assets in New Jersey as well as those located in other states or countries. A deduction is
permitted for all qualified debts and expenses of the estate (see back of Schedule “C” for allowable
deductions). A tax is first computed on the entire net estate. The tax due New Jersey is then
determined by multiplying the tax so computed by a fraction the numerator of which is the
adjusted value of the New Jersey property and the denominator of which is the adjusted value of
the entire net estate. This method requires that all of the schedules be completed (Schedules
A – F).
Use worksheet 2. See example on pages 14 and 17.
5
  METHOD 3 - RATIO TAX USING GROSS ESTATE (FLAT TAX METHOD)

This method of filing is easier and quicker than Method 2 since it requires that only a total number
be given for the decedent’s assets wherever located. All assets do not need to be listed on the
various schedules as required under Method 2. Mortgage or liens due as of the decedent’s date of
death are the only allowable deductions. Only page 1 and Schedules A, E, F and sometimes B (1)
are required to be completed. Minimal information is reported on each. The tax computed using
this method will in a large number of instances approximate the tax computed under Method 2.
THIS METHOD REQUIRES THE ENTRY OF THE TOTAL ESTATE EVERYWHERE ON
PAGE 1, LINES 5 AND 9 BEFORE COMPLETING THE WORKSHEET.
Use worksheet 3. See example on pages 14 and 18.

Note: The filing of a separate flat tax affidavit is not required since the requirements for
filing same are met by completing Page 1 and Schedules A,E,F and B(1) of Form IT-
NR.

 METHOD 4 - DIRECT TAX – SPECIFIC DEVISE, JOINTLY OWNED

AND TRANSFERS OF NEW JERSEY REAL AND TANGIBLE PERSONAL
PROPERTY
This method must be used if any of the following situations apply:
A. When real estate or tangible personal property located in New Jersey is specifically devised
by the decedent’s Last Will and Testament or Trust Instrument. This includes the right
to use the property for life (life estate). A specific devise is a devise of specifically
identified property such as “my home at 4 Tioga Street, Maplewood, New Jersey”.

B. When the New Jersey real estate or tangible personal property is held or registered in the
nameof the decedent and another individual as Joint Tenants with the Right of
Survivorship.

C. When the real estate or tangible personal property located in New Jersey is transferred
during the3 year period prior to the decedent’s date of death and the decedent did not
receive the total (actual) fair market value of the property in money or money’s worth, or
when the New Jersey real or tangible personal property is transferred but the decedent
retained a right in the property for his/her lifetime.

Examples of tangible personal property are household furniture, automobiles, boats, artwork,
jewelry and other items located in New Jersey either permanently or for an indefinite
periodof time.
This method only requires the filing of page 1 and Schedule A and F and sometimes Schedule B
(1)and E.
Use worksheet 4. See example on pages 14 and 19.
SEE PAGES 14 THRU 19 FOR EXAMPLES OF THE ABOVE
METHODS.
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 IMPORTANT REMINDERS

ITEMS TO SUBMIT WITH THE RETURN

A. If you are filing a return using Method 1, submit items 1, 2, and 6, 7 (if appropriate).
B. If you are filing a return using Method 4, submit items 1, 2, 3, 6 and 7 (if
appropriate).
C. If you are filing a return using Method 2 or 3, submit all of the items listed.
D. If you have more than one New Jersey taxable asset and are filing a return using
either Method 4 or 1, submit items 1, 2, 3, 6 and 7 (if appropriate). If using a
combination of Methods 4 or 1 along with Methods 2 or 3, submit all of the
items on the list.

1. If the decedent died testate you must submit a legible copy of the Last Will and
Testament, all codicils thereto and any separate writings.
2. Copy of the decedent’s death certificate.
3. Copies of all trust agreements created by the decedent.
4. Copy of the decedent’s last full year’s federal income tax return.
5. Copy of letters testamentary or of administration.
6. Copy of Form Hud-1 (closing statement) if the New Jersey real estate was sold
after the decedent’s death.
7. Copy of the deed to the New Jersey real estate, but only if the real estate was
held inthe names of the decedent with others or transferred to another within 3
years prior to decedent’s date of death.

Note: All returns and forms must PAYMENTS ON

be signed, notarized and contain the
ACCOUNT
decedent’s social security number. All correspondence must contain the
decedent’s
1. Paymentsname and social
on account may besecurity number.
made to avoid the accrual of interest. Form IT-EP is used
for this purpose. It may be found on Taxation’s website.
2. It is suggested that payments be made by certified check to avoid a possible delay in the
issuanceof waivers.
3. All checks should be made payable to New Jersey
7 Inheritance Tax and sent to New Jersey
WORKSHEET 1
METHOD 1 SIMPLIFIED TAX COMPUTATION

Decedent's Name Decedent's SS NO

This is an optional method of computing the tax. It is used when the representatives of the estate
choose not to file the information required for Methods 2, 3 and 4 and therefore choose not to
compute the tax using Methods 2, 3 and 4. This method allows the representative to pay tax on
the gross value of the New Jersey real and tangible personal property at a 15% rate and file a minimal
amount of paperwork. If the real estate is subject to a mortgage, the balance due on the decedent's
date of death is deducted on Schedule "A".

IMPORTANT INSTRUCTIONS
1. If the decedent owned real estate located in New Jersey on his/her date of death complete Schedule
"A". Include New Jersey real estate only.

2. If the decedent owned tangible personal property located in New Jersey on his/her date of death
complete Schedule "B(1)" . Include New Jersey tangible personal property only. Examples of tangibles
personal property are household furniture, automobiles, boats, artwork, jewelry and other items
located in New Jersey either permanently or for an indefinite period of time.

3. If the decedent, during the 3 year period prior to his/her date of death, transferred New Jersey real
estate or tangible personal property without receiving the total (actual) fair market value of the
property transferred or if the decedent transferred New Jersey real or tangible personal property
but retained a right in the property for his/her lifetime then complete the bottom section of
Schedule "E".
TAX COMPUTATION WORKSHEET

1. Enter total from Schedule A……………………………………………... ….. 1

2. Enter total from Schedule B (1)……………………………….. ……………. 2

3. Enter total from Schedule E……………….…………………………………. 3

4. Total of above lines 1, 2 and 3………………………………………………… 4

5. Multiply line 4 by 15%.................................................................................... 5 x 15%

6. New Jersey Non-Resident Inheritance Tax…………………….................... 6

(Insert this number on IT-NR page 1 line 11)

Page
 WORKSHEET 2
METHOD 2 RATIO TAX USING NET ESTATE

Decedent's Name Decedent's SS

NO

For use when no amount of the New Jersey taxable property is specifically devised or jointly
owned (joint tenants with the right of survivorship), or transferred to one or more individuals within
three (3) years of the decedent's death, or to take effect at or after the decedent's date of death. If
the New Jersey taxable property or any amnount thereof is specifically devised or jointly owned
(joint tenants with the right of survivorship), or transferred as indicated above, that amount is not
subject to the ratio tax but rather is taxed directly to the devisee(s) or surviving joint tenant(s) at the
resident tax rates. If any of these situations apply see instructions for Method 4 or optional Method 1.
TAX COMPUTATION WORKSHEET

1. Gross value of New Jersey real estate and tangible personal property…………1
[From Schedule "A" and/or "B(1)"]

2. Total gross estate wherever situate (IT-NR, page 1, Line 5)…………………….. 2

3. Gross to gross ratio (Line 1 divided by Line 2)…………………………………….. 3

4. Total of administration expense, counsel fees and commissions…………………

(From subtotal line in Schedule "C") 4

5. Deduction from gross value New Jersey taxable property………………………..

(Line 4 multiplied by Line 3) 5

6. Net New Jersey taxable property (Line 1 minus Line 5)...…….………………….. 6

7. Net estate wherever situate (IT-NR, page 1, Line 7)……………….….………….. 7

8. Ratio (Line 6 divided by Line 7) (not to exceed 100%)……………………………. 8

9. New Jersey resident tax on amount reported on Line 7

(See page 2 of the instructions for classes of beneficiaries and tax rates)……..9

10.New Jersey nonresident ratio tax (Line 8 multiplied by Line 9)…..................10

(Insert this number on IT-NR page 1, line 11)

NOTE
In the event that any amount of the estate is contingent, the ratio calculated on Line 8
above should be applied to the resident compromise tax to compute the nonresident
compromise tax due.

All decimals are to be rounded to four places.

Page
WORKSHEET 3
METHOD 3 RATIO TAX USING GROSS ESTATE

Decedent's Name Decedent's SS

NO

For use when no amount of the New Jersey taxable property is specifically devised or jointly
owned (joint tenants with right of survivorship), or transferred to one or more individuals within
three (3) years of the decedent's death, or to take effect at or after the decedent's date of
death.
If the New Jersey taxable property or any amount thereof is specifically devised or jointly
owned (joint tenants with the right of survivorship), or transferred as indicated above, that
amount is not subject to the ratio tax but rather is taxed directly to the devisee(s) or surviving
joint tenant(s) at the resident tax rates. If any of these situations apply see the instructions
for Method 4 or optional Method 1.
TAX COMPUTATION WORKSHEET

1. Gross value of New Jersey real estate and tangible personal

property…
1 [from Schedule "A" and/or B (1)].

2. Value of gross estate both in and outside of New Jersey ………………. 2

(From IT-NR, Page 1, Line 5)

3. Gross to gross ratio (Line 1 divided by Line 2) …………………………… 3

4. New Jersey resident tax on amount reported on Line 2 above…………..

(See page 2 of the instructions for classes of beneficiaries and tax rates.) 4

5. Ratio tax (Line 3 multiplied by Line 4).................................................5

(Insert this number on IT-NR page 1, Line 11)

NOTE
In the event that any amount of the estate is contingent, the ratio calculated on Line 3
above should be applied to the resident compromise tax to compute the nonresident
compromise tax due.

All decimals are to be rounded to four places.

Page
WORKSHEET 4
METHOD 4 DIRECT TAX WORKSHEET

Decedent's Name Decedent's SS NO

This method is required to be used if the decedent either made a specific devise of New Jersey
property, or owned New Jersey property with another as Joint Tenants with the Right of Survivorship,
or transferred New Jersey property to another during the 3 year period prior to the decedent's date
of death without receiving the total (actual) fair market value of the property transferred, or where
the decedent transferred New Jersey real or tangible personal property but retained a right in the
property for his/her lifetime. For a more complete description of the above situations see those
given on page 6 for Method 4.

IMPORTANT INSTRUCTIONS

1. If the decedent made a specific devise of New Jersey real estate complete Schedule "A". Only
include the New Jersey real estate. If there was a specific bequest of tangible personal property
located in New Jersey complete Schedule B(1). Only include the New Jersey tangible personal
property.

2. If the decedent owned New Jersey real estate or New Jersey tangible personal property as Joint
Tenants with the Right of Survivorship complete Schedule A or Schedule B (1) or both, if both
situations apply. Only include New Jersey real estate or New Jersey tangible personal property. Do
not include any other assets.

3. If the decedent transferred New Jersey real estate or New Jersey tangible personal property during
the3 year period prior to his/her date of death without receiving the total (actual) fair market
value of the property or if the decedent transferred New Jersey real estate or tangible personal
property but retained a right in the property for his/her lifetime complete Schedule "E".
TAX COMPUTATION WORKSHEET

1. Enter total from Schedule A ……………………………………………………..…. 1

2. Enter total from Schedule B (1) ……………………………………………………. 2

3. Enter total from Schedule E ………………………………………………………… 3

4. Total of above lines 1, 2 and 3……………………………………………………… 4

5. New Jersey Resident Tax on amount reported on line 4.………………………….5

(See page 2 of the instructions for classes of beneficiaries and tax rates)

6. New Jersey Non-Resident Inheritance Tax - Same as line 5……………………..6

(Insert this number on IT-NR page 1, line 11).

Page
WORKSHEET 5 COMBINATION DIRECT TAX AND RATIO TAX USING NET ESTATE
WORKSHEET

Decedent's Name Decedent's SS NO

For use when there are two (2) or more New Jersey taxable assets and at least one of them is
specifically devised or jointly owned (joint tenants with right of survivorship), or transferred to one or
more individuals within three (3) years of the decedent's death, or to take effect at or after the decedent's
date of death and the other New Jersey taxable assets are held in the decedent's name alone or as
tenants in common with another individual.

If the New Jersey taxable property or any amount thereof is specifically devised or jointly owned (joint
tenants with right of survivorship), or transferred as indicated above, that amount is not subject to the
ratio tax but rather is taxed directly to the devisee(s) or surviving joint tenant(s) at the resident tax
rates.
TAX COMPUTATION WORKSHEET

1. Direct tax on New Jersey taxable property specifically devised, jointly

owned, or transferred as indicated above. Use worksheet 4, page 11 to
compute the tax
for this line…………………………………………………………………………...…….. 1

2. Value of New Jersey taxable property not specifically devised, jointly owned, or
transferred as indicated above……………………………………………………...…..

3. Value of gross estate both in and outside of New Jersey (not including the
New Jersey property specifically devised, jointly owned, or transferred as
indicated above) (IT-NR, Page 1, Line 5 less New Jersey property
described herein from
worksheet 4, line 4)…………………………………………………………………....… 3

4. Ratio (Line 2 divided by Line 3) ……………………………………………….………… 4

5. Total of administration expenses, counsel fees, and commissions

(from subtotal line in Schedule "C")………………………………………..…...…. 5

6. Amount of Line 5 to be deducted from New Jersey taxable property

not specifically devised, jointly owned, or transferred as indicated
above.
(Line 4 multiplied by Line 5).......................................................................................6

7. Net New Jersey property subject to the ratio tax (Line 2 minus Line 6)....................7

8. Net estate wherever situate (not including the New Jersey property
specifically devised, jointly owned, or transferred as indicated above) (IT-NR,
Page 1, Line 7,
less the New Jersey property described herein from worksheet 4, line 4)…………. 8

9. Ratio (Line 7 divided by Line 8) (not to exceed 100%)……..……………………...….9

10. New Jersey resident tax on amount reported on Line 8 above

(See page 2 of the instructions for classes of beneficiaries and tax rates)..............10

11. New Jersey Non-Resident Ratio tax (Line 9 multiplied by Line 10)….....................11

12. Total New Jersey Non-Resident direct tax and ratio tax (Line 1 plus Line 11)
(Insert this amount on IT-NR page 1, Line 11)…..............................................12

NOTE

Page
In the event that any amount of the estate is contingent, the ratio calculated on Line 9 above
should be applied to the resident compromise tax to compute the nonresident compromise
tax due.

All decimals are to be rounded to four places.

Page
WORKSHEET 6 COMBINATION DIRECT TAX AND RATIO TAX USING GROSS ESTATE
WORKSHEET

Decedent's Name Decedent's SS

NO

For use when there are two (2) or more New Jersey taxable assets and at least one of them
is specifically devised or jointly owned (joint tenants with right of survivorship), or transferred
to one or more individuals within three (3) years of the decedent's death, or to take effect
at or after the decedent's date of death and the other New Jersey taxable assets are held
in the decedent's name alone or as tenants in common with another individual.

If the New Jersey taxable property or any amount thereof is specifically devised or jointly
owned (joint tenants with right of survivorship), or transferred as indicated above, that amount
is not subject to the ratio tax but rather is taxed directly to the devisee(s) or surviving joint
tenant(s) at the resident tax rates.

TAX COMPUTATION WORKSHEET

1. Direct tax on New Jersey taxable property specifically devised,

jointly owned, or transferred as indicated above. Use worksheet
4, page 11
to compute the tax for this line….....................................................1

2. Value of New Jersey taxable property not specifically devised,

jointly owned, or transferred as indicated above…
2

3. Value of gross estate both in and outside of New Jersey (not

including the New Jersey property specifically devised, jointly
owned, or transferred as indicated above) (IT-NR Page 1, Line 5
less New
Jersey property described herein)….......................................................3

4. Ratio (Line 2 divided by Line 3)......................................................4

5. New Jersey resident tax on amount reported on Line 3 above (see

page 2 of the instructions for classes of beneficiaries and tax rates). 5

6. New Jersey Non-Resident ratio tax on the amount reported on line

3. (Line 4 multiplied by Line 5)
6

7. Total New Jersey direct tax and ratio tax (Line 1 plus Line 6)
(Insert this amount on IT-NR Page 1, Line 11)….............................7

NOTE

Page
In the event that any amount of the estate is contingent, the ratio calculated on Line 4
above should be applied to the resident compromise tax to compute the nonresident
compromise tax due.

All decimals are to be rounded to four places.

Page
IT-NR (8-10) (67) For Division Use Only
STATE OF NEW JERSEY
Transfer Inheritance Tax Inheritance Tax Return
PO Box 249
Trenton, NJ 08695-0249 NON-RESIDENT DECEDENT
(Instructions on reverse side)

Decedent’s Name Decedent’s S.S. No. / /

(Last) (First) (Middle)

Date of Death (mm/dd/yy) / / State of Residence Testate □ Intestate □

Mailing Address Name Phone ( )

to send all
correspondence Street

City State Zip Code

Do you expect to file a Federal Estate Tax Return? . . . . . . . . . . . . . . . . . Yes No
1. Schedule A . . . . . . . . . . . . . . . . . . . . . Real Property . . . . . . . . . . . . . . . . □
.......□
................. 1.

2. Schedule B . . . . . . . . . . . . . . . . . . . . . Closely Held “Businesses” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Schedule B(1) . . . . . . . . . . . . . . . . . . . 3.

4. Schedule E . . . . . . . . . . . . . . . . . . . . . . Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Total Estate Wherever Situate (Add Lines 1 thru 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Schedule C . . . . . . . . . . . . . . . . . . . . . Deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. Net Estate Wherever Situate (Line 5, minus Line 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

8. Contingent Amount Included in Line 7 (See instructions on reverse side) . . . . . . . . . . . . . . . . . . . . . . . . . 8.

9. Balance of Estate (Line 7, minus Line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

10. Method Used for Tax Calculation: Method 1 Method 2 Method 3 Method 4 . . . . . . . 10.

11. Tax Due Based on Calculation Method□(from attached□worksheet) . .□

. . . . . . . . . . . .□
................ 11.

12. Compromise Tax Due on Line 8 Amount (See instructions on reverse side) . . . . . . . . . . . . . . . . . . . . . . . 12.

13. Contingent Tax (See instructions on reverse side) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.

14. Total Tax Due (Total - Line 11 thru Line 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.

15. Interest Due (If applicable) (See instructions on reverse side) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.

16. Total Amount Due (Line 14, plus Line 15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.

17. Payment on Account (If applicable) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.

18. If Line 17 (Payments) is LESS THAN Line 16, Enter BALANCE DUE - PAY WITH FORM NR-PMT 18.
19. If Line 17 (Payments) is MORE THAN Line 16 Enter REFUND AMOUNT . . . . . . . . . . . . . . . . . . . . 19.

Deponent says, under penalty of perjury, “I declare that I have examined this return and all accompanying schedules and to the best of my knowledge and belief, it is true,
correct and complete.” I hereby authorize the party(s) set forth above to act as the estate’s representative, to receive confidential information, and to make presentations on
behalf of the estate.
Subscribed and sworn before me
(Executor - Administrator - Heir-at-law)
this day of , .
Address:

Official Title (Notarized)

THIS FORM MAY BE REPRODUCED

IT-NR - Page
 INSTRUCTIONS FOR IT-NR PAGE 1
Lines 8, 12 and 13 With respect to the payment of the tax due on an executory
In the case of a transfer or transfers made subject to a devise, or a transfer subject to a contingency or power of
contingency or condition which renders a definite determination appointment, any payment on such a transfer after the expiration
of the Transfer Inheritance Tax due impossible, the Division will of two months from the date the contingency occurs or the
suggest a compromise of the tax based upon immediate payment property vests, shall bear interest at the rate of 10% per annum.
and final disposition of the tax. N.J.A.C. 18:26-2.14, N.J.S.A.
In any case where a contingent remainder vests in beneficial
54:36-6 AND 54:36-5.
possession and enjoyment subsequent to the death of the original
Therefore, enter on Line 8, the amount of the estate that is decedent, but prior to the expiration of the statutory interest
“Contingent”. period, interest on the contingent tax does not start to accrue until
In the event you wish to compute a compromise for the eight months from the date of death of the original decedent.
Division’s review, you should include a rider setting forth full
computations and details and enter the proposed amount on Line
12. Following this procedure may speed the auditing of the Line 17
decedent’s return. Payments on account may be made at any time to avoid
further accrual of interest on the amount so paid. Any
Be advised that where all or any portion of the contingent overpayment will be refunded upon determination of the amount
amount has vested in a beneficiary by reason of the happening of actually payable provided that such determination is made within
any contingency event, full details should be set forth on a rider, three years of the date of the actual payment. Make checks
the tax computed on a rider and entered on Line 13. payable to: NJ Inheritance and Estate Tax, PO Box 249, Trenton,
NJ 08695- 0249.
Line 15 Line 18
Interest accrues at the rate of 10% per annum on any tax due When making a payment with the return, complete form NR-
or portion thereof not paid within eight months of the decedent’s PMT and attach check.
death.

Examples of Interest Computations

Date of Death...........................................................................................................5-28-90
Interest Date (eight months)....................................................................................1-28-91

Tax Assessed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,120.48

Interest @ 10% per annum from 1-28-91 to 9-19-91 ($7,120.48 x 10% x 234/365) . . . . . . . . . . . . . . . . . . . 456.49
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,576.97
Payment on Account (9-19-91) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,120.48)
Balance Due (plus interest @ 10% per annum from 9-19-91 to date of final payment) . . . . . . . . . . . . . . . . . . 456.49

Date of Death...........................................................................................................8-29-90
Interest Date (eight months)....................................................................................4-29-91

Tax Assessed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $68,389.70

Payment on Account (4-19-91) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16,974.56)
Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,415.14
Payment on Account (4-28-91) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (31,927.02)
Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,488.12
Interest @ 10% per annum from 4-29-91 to 5-10-91 ($19,488.12 x 10% x 11/365) . . . . . . . . . . . . . . . . . . . 58.73
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,546.85
Payment on Account (5-10-91) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (27,048.67)
Overpayment (to be refunded) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,501.82

IT-NR - Page
 NR-PMT (8-10) STATE OF NEW JERSEY For Division Use
DIVISION OF TAXATION
Transfer Inheritance Tax Only
PO Box 249 INHERITANCE AND ESTATE TAX
Trenton, NJ 08695-
0249
Non-Resident Inheritance Tax Payment

Decedent’s Name
(Last) (First) (Middle)

Decedent’s S.S. No. / /

Date of Death (mm/dd/yy) / / State of Residence

AMOUNT PAID WITH RETURN (From Line 18)

(Code 67 ) 1. Non-Resident Inheritance Tax (total of all checks)....................................$

2. Total Amount Remitted with this Form....................................................$

ATTACH CHECKS

Payments on account may be made at any time to avoid further accrual of interest on the amount so paid. All
applications for the refund of an overpayment must be made in writing within the three year statutory period in
accordance with and in the manner set forth in N.J.A.C. 18:26-3A.12 (Estate Tax) and N.J.A.C. 18:26-10.12
(Inheritance Tax).

Make checks payable to “NJ Inheritance and Estate Tax”, PO Box 249, Trenton, NJ 08695-0249
(include decedent’s name and social security number on check)
 SCHEDULE “A” REAL PROPERTY
NON-RESIDENT DECEDENT
(See Instructions on reverse side)

/ /
Decedent’s Name Decedent’s Social Security Number

Description of Real Estate Full Assessed Value Full Market Value Value of Decedent’s This Column
(List all real estate both for at Equity for
outside and within New Jersey) Year of Death Date of Death (and how determined) Division Use

1. Street and Number

Municipality:

Lot: Block:

County: State:

Owner of Record:

Mortgage Balance: $

Mortgage Insurance: $

Has any of the real estate reported in

this schedule been sold?
□ □
Yes No

If Yes is checked, submit a copy of the

closing statement or HUD 1 Form

Method 1 or 4, insert this total on page 1, lines 1, 5 and 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Method 2, insert this total on page 1, line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Method 3, do not insert on page 1

(If additional space is required, attach riders of the same size)

IT-NR - Page
 INSTRUCTIONS FOR SCHEDULE “A”

Real property in New Jersey should be described by the name of the town or city and county wherein said
property is located, and by lot and block number and street number, if any.

• Explain how any fractional ownership in realty was derived. Indicate also whether held as tenants in
common, as joint tenants or by entireties.

• Submit verification of the balance at the decedent’s date of death of any mortgage on New Jersey real estate.

• Submit a copy of any appraisal, contract of sale, or closing statement.

IT-NR - Page
 SCHEDULE “B” CLOSELY HELD “BUSINESSES”
NON-RESIDENT DECEDENT
(See Instructions on reverse side)

/ /
Decedent’s Name Decedent’s Social Security Number

Name and Federal Identification Number of Any Sole

Proprietorship, Partnership, Joint Venture and/or Closely Held Market Value This Column for
Corporation in Which the Decedent Held Any Interest at Date of Death Division Use

1.

Insert this total on page 1, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(If additional space is required, attach riders of the same size)

IT-NR - Page
 INSTRUCTIONS FOR SCHEDULE “B”

GENERAL
If the taxpayer had any interest in a closely held corporation, partnership, joint venture or sole proprietorship, the
following information is required (in each instance):
1. A detailed balance sheet and profit and loss statement, revised to reflect the market value of the assets thereof as
distinguished from the net book value, as of the decedent’s date of death, or as near thereto as the Director may deem
acceptable.
2. For the five year period preceding the decedent’s date of death:
A. Detailed balance sheets.
B. Detailed profit and loss statements.
3. The nature of the business.
4. Describe and state the assessed and market value of any real property.
5. Set forth your basis for determining the clear market value as reported.

CLOSELY HELD CORPORATIONS

If the decedent had any interest in a closely held corporation, submit (in addition to the general information required
above):
1. For the five year period preceding the decedent’s date of death:
A. A listing of salaries paid to officers.
B. A listing of dividends paid, together with the name(s) of the payees.
2. Copy/copies of any stock purchase or option agreement to which the decedent was a party as of the date of death.
3. Copy/copies of any insurance policy/policies on the decedent’s life payable to the corporation as beneficiary together
with a statement of the benefits payable thereunder.
4. The number of shares of stock of all classes issued and outstanding and the par value thereof.
5. List of stockholders setting forth the number of shares held by each.

PARTNERSHIPS OR JOINT VENTURES

If the decedent had any interest in a partnership or joint venture, submit (in addition to the general information required
above):
1. Copy of the partnership agreement.
2. Copy/copies of any mutual purchase agreement(s) to which the decedent was a party at the date of death.
3. Copy/copies of any insurance policy/policies on the decedent’s life payable to the surviving partners as
beneficiary together with a statement of the benefits payable thereunder.

SOLE PROPRIETORSHIPS
If the decedent had any interest in a sole proprietorship, submit (in addition to the general information required above):
1. If any of the sole proprietorship’s assets are listed elsewhere on this return, (i.e. Schedule “A”), make full
disclosure.

IT-NR - Page
 SCHEDULE “B (1)” ALL OTHER PERSONAL PROPERTY
NON-RESIDENT DECEDENT
(See Instructions on reverse side)

/ /
Decedent’s Name Decedent’s Social Security Number

All Other Personal Property Owned Individually or Jointly; Market Value This Column for
Indicate the Manner of Registration at Date of Death Division Use

1.

Method 1 or 4, insert this total on page 1, lines 3, 5 and 9 . . . . . . . . . . . . . . . . . . .

Method 2, insert this total on page 1, line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Method 3, do not insert on page 1
(If additional space is required, attach riders of the same size)

IT-NR - Page
 INSTRUCTIONS FOR SCHEDULE “B (1)”

List all tangible and intangible personal property (excluding that on Schedule B) wherever situated.

This schedule must disclose not only all other personal property owned individually by the decedent but also all other
personal property standing in joint names (such as United States Savings Bonds, bank accounts, shares of stock, etc.) which
may be claimed by another or others as survivors. The deceased joint tenant is deemed to have been the absolute owner of
the property and the survivor/survivors are presumed to have received a devise or bequest of the whole and not a part of the
property. This presumption can be rebutted to the extent that the survivor can prove contributions out of funds separate and
apart from those that originated in the decedent.

This schedule must list all other intangible personal property such as, but not limited to, United States Savings Bonds;
treasury certificates; cash on hand; cash in the bank; deposits in Federal or State Credit Unions; mutual funds; bonds and
mortgages; promissory notes; claims; accounts receivables; corporate bonds; corporate stocks; accrued interest; dividends;
salaries or wages; insurance payable to the estate or its representatives; interest in any undistributed estate or income from
any property held in trust under the will or agreement of another.

IT-NR - Page 8
 SCHEDULE “C” DEDUCTIONS CLAIMED
NON-RESIDENT DECEDENT
(See Instructions on reverse side)

/ /
Decedent’s Name Decedent’s Social Security Number

Debt or Claim of Nature of Same Amount This Column for

Division Use

Estimated Expenses for:

□Administration . . . . . . . . . . . . . . . . . . .
(Attach an itemized list)

Name(s): Counsel Fees:

Agreed Upon . . . . . . . . . . . . . . . . . . . .
□
Estimated . . . . . . . . . . . . . . . . . . . . . . .
If more than 2 attach a rider □

Name(s): Executor’s or Administrator’s Commissions

(Must not be claimed unless reported for
Income Tax purposes.)
SS# / /

SS# / /

SUBTOTAL . . . . . . . . . . .
(Insert on Worksheet 2 Line 4)

Funeral . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transfer taxes paid to other states . . . . . .

(itemize by state)

Other Deductions (list individually)

Total of entire column. Insert this total on page 1, line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(If additional space is required, attach riders of the same size)

IT-NR - Page
 INSTRUCTIONS FOR SCHEDULE “C”

If any notes, brokerage accounts or other claims are secured by collateral, describe the collateral pledged, with
its value as of the date of death of the decedent and state whether or not said collateral is included among the assets
disclosed in Schedule B or B(1). If collateral is not pledged, state after each loan “No collateral pledged”.
NOTE: No debt or claim is to be listed in this schedule unless still owing and unpaid at the time of death and unless
such debt or claim is to be paid out of the assets of the estate.
(EXAMPLE: That portion of medical bills paid or reimbursed by Medicare or other medical insurance
should not be claimed on this schedule).
Contested claims must be explained in detail. Do not list any taxes, either real, personal or
income, chargeable for any period subsequent to date of death.
The estate agrees to advise the Division if the amount actually paid in settlement of any fee, commission or
debt is greater or less than the estimated amount allowed and further agrees to the correction of the assessment, if
necessary.
For mortgages see instructions for Schedule “A”.
Executor Commissions: See N.J.A.C. 18:26-7.10 or questions 25, 26 and 27 New Jersey Non-Resident
Inheritance Tax Most Frequently Asked Questions or Taxation’s website for guidelines on how to compute same.

Examples of Allowable Deductions

FUNERAL EXPENSES: Cost on recovery and/or discovery of assts
Cemetery Plot (immediate family) Realty commissions in accordance with N.J.A.C. 18:26-7.12
Funeral Luncheon Storage of property if delivery to legatee not possible
Flowers within reasonable time
Minister/Rabbi/Priest/Imam
Monument/Lettering DEBTS OF DECEDENT OWING and
Funeral Costs UNPAID AT TIME OF DEATH:
Acknowledgments Personal accounts
Judgments
ADMINISTRATION EXPENSES: Federal income and gift taxes
Appraisal of real estate Real estate mortgage:
Appraisal of personal effects (a) Interest accrued before death, deducted in
Surrogate’s fees Schedule C
Probate expenses (b) Principal offset in Schedule A
Fee to notify creditors Charitable pledges
Death certificates State, county and local taxes accrued before death
Telephone tolls Unpaid Inheritance Tax on interrelated estate
Cost of Executor’s or Administrator’s Bond Transfer Taxes paid to other states
Collection costs Debts on property located outside of New Jersey
Court costs
Cost on recovery and/or discovery of assets

Examples of Non-Allowable Deductions

Contingent liabilities Storage expense
Mortgage, taxes and accrued interest on tenants by entirety
Litigated and disputed claims
property
State, county and local taxes accruing after date of death
Debts paid by insurance
New Jersey Transfer Inheritance Tax
Medical expenses paid prior to death
Real estate brokers commissions, except if real property sold
Liabilities of corporation of which decedent was a
during administration of estate
shareholder
Federal Estate Tax
Real estate and property maintenance costs

IT-NR - Page
 SCHEDULE “D” NON-RESIDENT DECEDENT

/ /
Decedent’s Name Decedent’s Social Security Number

Details of Real and Tangible Personal Property subject to the jurisdiction of the State of New Jersey.
CONSENTS TO TRANSFER WILL BE GRANTED ONLY ON REAL ESTATE INCLUDED IN THIS SCHEDULE.

1. List below all New Jersey realty owned by decedent.

2. Also list all tangible goods, wares and merchandise in New Jersey. Market Value This Column for
(Note: Waivers are not required to transfer any intangibles such as bank accounts, of Decedent’s Equity Division Use
mortgages, or bonds and stocks of New Jersey corporations.)

IT-NR - Page
 SCHEDULE “E” TRANSFERS
NON-RESIDENT DECEDENT

/ /
Decedent’s Name Decedent’s Social Security Number

(ALL QUESTIONS MUST BE ANSWERED)

1. Did decedent, within three years of death, transfer property, valued at $500.00 or more, without receiving
full financial consideration therefor? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . □Yes □No
2. Did decedent, at any time, transfer property, reserving (in whole or in part) the use, possession, income,
or enjoyment of such property? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . □Yes □No
3. Did decedent, at any time, transfer property on terms requiring payment of income to decedent from a
source other than such property? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . □Yes □No
4. Did decedent, at any time, transfer property, the beneficial enjoyment of which was subject to change
because of a reserved power to alter, amend, or revoke, or which could revert to decedent under terms
of transfer or by operation of law? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
If answer to any of above questions is “yes”, set forth a description of property transferred, the fair □ □
market value at date of death, dates of transfers, and to whom transferred. Submit copy of trust deed or,
agreement, if any. (If transfers are claimed to be untaxable, also submit detailed statement of facts on which
such claim is based, proof as to decedent’s physical condition and copy of death certificate.)
5. Was decedent a participant in any pension plan that provided for payment of an annuity or lump sum on
or after death to another? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
6. Did decedent purchase or in any manner participate in any contract or plan providing for payment of an □ □
annuity or lump sum on or after death to another, except life insurance contracts payable to a designated
beneficiary? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
(Matured endowment policies, claim settlement certificates, supplementary contracts, annuity contracts □ □
and refunds thereunder and interest income certificates even though issued by an insurance company are
not considered life insurance contracts.)
7. Was a single premium life insurance policy issued on decedent’s life in conjunction with an annuity
contract? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
If answer to questions 5, 6 or 7 is “Yes”, attach a copy of all such contracts, plans, and policies. □ □
8. Were any accumulated dividends due on any contract of insurance? (If yes, list below) . . . . . . . . . . . . . . . . . Yes No
□ □
Date of Transfer; Description of Property, Both Real and Personal:
Actual Consideration if Any; Names and Relationship to Market Value This Column for
Decedent of Donees, Assignees, Transferees, etc. at Date of Death Division Use

Method 1 or 4, insert total on Page 1, lines 4, 5, and 9 . . . . . . . . . . . . . . . . . . . . . .

Method 2, insert total on Page 1, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Method 3, do not insert on page 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Method 1 and 4 filers answer questions 1-4

Method 2 and 3 filers answer all questions
(If additional space is required, attach riders of the same size)

IT-NR - Page
 SCHEDULE “F” BENEFICIARIES
NON-RESIDENT DECEDENT
ATTACH COPY OF WILL AND CODICILS HERE

/ /
Decedent’s Name Decedent’s Social Security Number

In case of intestacy, the parentage of all collateral heirs (such as nieces, nephews, cousins, etc.) must be set forth. The relationship of step-parent,
step-child, step-brother or step-sister must be so stated.
BENEFICIARIES AND ADDRESSES Survived Age At Interest of
Relationship Class Decedent Death of
(State full names and addresses of all who have an Beneficiary
State Decedent
interest, vested, contingent or otherwise, in estate) In Estate
Yes or No

Deponent further says the following schedule contains the names of all beneficiaries who died before or after decedent’s death:
NAME DATE OF DEATH DOMICILE AT DEATH

Under authority of Federal law, the Division of Taxation of the Department of the Treasury of the State of New Jersey and the Internal Revenue
Service have entered into a Federal/State Agreement for the mutual exchange of tax information for purpose of tax administration.

IT-NR Page 13
 EXAMPLE 1 – USED FOR METHODS 1, 2 AND 3
The decedent died a resident of Pennsylvania owning real estate in Ocean City, New Jersey with a
date of death fair market value of $100,000.00 and an assessed value of $85,000.00. The
decedent also owned a boat, which was kept in New Jersey that had a value of $10,000.00.

Other assets consisted of real estate in Pennsylvania with a value of $200,000.00,

stock valued at $160,000.00, two bank accounts, one in Pennsylvania with a date of death balance of
$10,000.00 and one in New Jersey with a balance of $20,000.00. The total gross value of the
estate everywhere is $500,000.00.

The expenses of this estate are: attorney’s fees $3,000.00, executor’s commissions $2,000.00,
administration expenses $1,300.00, funeral expenses $6,000.00, credit card debt $8,000.00, telephone
and electric bills owed at death $230.00. Total expenses $20,530.00.

Gross Estate Everywhere $500,000.00

Total Expenses Everywhere 20,530.00
Net Estate Everywhere $479,470.00

Beneficiaries – The decedent’s niece is the only beneficiary.

EXAMPLE 2 – USED FOR METHOD 4 OR OPTIONAL METHOD 1

The decedent died a resident of Florida owning real estate in Florida worth $210,000.00 and bank
accounts with date of death balances totaling $105,000.00. Debts and administration expenses amounted
to $26,000.00.
The decedent also owned real estate, located in Cape May, New Jersey with a nephew as Joint
Tenants with the Right of Survivorship. The fair market value as of the decedent’s date of death
was $160,000.00 and the assessed value was $132,000.00.

The New Jersey real estate was purchased in 1993. The decedent paid the full purchase price, the
nephew did not make any contributions towards purchasing the real estate. Therefore, the full
$160,000.00 value of the property will be used in the Inheritance Tax Return and on the tax
computation worksheet.

As required by New Jersey Statute the full value of the New Jersey real estate must be used
unless the surviving joint tenant can prove to the satisfaction of the Director, Division of
Taxation, State of New Jersey that they contributed toward the purchase price.

The beneficiary of an asset owned as Joint Tenants with the Right of Survivorship is the surviving
joint tenant. In this particular matter the joint tenant is the decedent’s nephew, a Class “D”
beneficiary.

Since the real estate was owned as Joint Tenants with the Right of Survivorship the estate is
required to use method 4 to compute the tax unless the optional method 1 is chosen.

Methods 1 and 4 use only the value of the New Jersey taxable assets in the tax computation.
No other assets are required to be reported or debts of the estate allowed to be claimed.
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 EXAMPLE 3 – USED FOR COMBINATION DIRECT TAX AND RATIO TAX
OR COMBINATION DIRECT TAX AND FLAT TAX OR OPTIONAL METHOD 1
WORKSHEETS
The decedent died a resident of New York owning real estate in New York worth $200,000.00, a
bank account with a date of death balance of $12,000.00 and stock valued at $8,000.00.

They also owned 2 parcels of real estate in New Jersey.

Parcel #1 was held in the decedent’s name alone. It was located in Florence, New Jersey and had
a date of death fair market value of $190,000.00 and an assessed value of $140,000.00.

Parcel #2 was held in the name of the decedent and a cousin as Joint Tenants with the Right
of Survivorship. It was located in Atlantic City and had a fair market value of $170,000.00 as of
the date of death and an assessed value of $151,000.00.

The jointly owned New Jersey real estate was purchased in 2002. The decedent paid the full
purchase price, the cousin did not make any contributions towards purchasing the real estate.
Therefore, the full
$170,000.00 value of the property will be used in the Inheritance Tax Return and on the tax
computation worksheet.

As required by New Jersey Statute the full value of the New Jersey real estate must be used
unless the surviving joint tenant can prove to the satisfaction of the Director, Division of
Taxation, State of New Jersey that they contributed toward the purchase price. 1

The beneficiary of an asset owned as Joint Tenants with the Right of Survivorship is the surviving
joint tenant. In this particular matter the joint tenant is the decedent’s cousin, a Class “D”
beneficiary.

The expenses of the estate are: attorney’s fees $5,000.00, executor’s commissions $4,000.00,
administration expenses $1,300.00, funeral expenses $6,000.00, credit card debt $8,000.00
anda telephone bill of $100.00. Total expenses $24,400.00.

Gross estate everywhere $580,000.00

Total expenses everywhere 24,400.00
Net estate everywhere 555,600.00

Beneficiaries –
The decedent’s cousin who is the joint tenant of parcel #2 inherits that parcel by right of

survivorship. The decedent’s niece inherits the remainder of the estate.

1
N.J.S.A. 54:34-1 f

Page
 WORKSHEET 1
SIMPLIFIED TAX
METHOD 1

DIRECTIONS FOR COMPLETING THE INHERITANCE TAX RETURN USING THE INFORMATION GIVEN IN EXAMPLE 1 ON PAGE 14.
Schedule A Enter the description and values of the New Jersey real estate. Do not include any other real estate.
Schedule B(1) Enter the description and value of the boat located in New Jersey. Do not include any
other assets Note that the bank account in New Jersey is not included when reporting assets for
this method of filing since it is not tangible personal property. It is considered intangible
personal property.

Directions for completing the worksheet using the numbers given in the example .
Line 1 Enter the value of the NJ real estate reported on Schedule "A".
Line 2 Enter the value of the boat reported on Schedule "B(1)".
Line 3 This line is left blank since there were no assets reported on Schedule "E"
Line 4 Add lines 1, 2 and 3.
Line 5 Multiply line 4 by 15% and enter the result on line 6
Line 6 This is the New Jersey Non-Resident Inheritance Tax.

WORKSHEET 1 - METHOD 1 SIMPLIFIED TAX

1 Enter total from Schedule A 1 100,000.00

2 Enter total from Schedule B (1) 2 10,000.00

3 Enter total from Schedule E 3

4 Total of above lines 1, 2 and 3 4 110,000.00

5 Multiply line 4 by 15% 5 X 15%

6 New Jersey Non-Resident Inheritance Tax 6 16,500.00

(Insert this number on IT-NR page 1 line 11)

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 WORKSHEET
2 RATIO TAX USING NET ESTATE
METHOD 2

DIRECTIONS FOR COMPLETING THE INHERITANCE TAX RETURN USING THE INFORMATION GIVEN IN EXAMPLE 1 ON PAGE 14.
Schedule A Enter the description and values of the New Jersey and Pennsylvania real estate.
Schedule B Since there are no assets of this type owned enter the word "none".
Schedule B(1) Enter the description and values of the bank accounts, stock, and boat.
Schedule C Attorney's fees, executor's commissions, and administration expenses are entered in the
upper section of the schedule. Note that the expenses in this section are added and
entered on the subtotal line. Then this total is entered on line 4 of worksheet 2. In
this example
the subtotal is $6,300. Credit card debt, telephone and electric bills and funeral expenses
are entered in the lower section of the schedule. The expenses on the entire schedule
are then added to give you the total expenses of the estate. In this example the total
expenses
are $20,530.
Schedule E Answer the questions at the top of the schedule. If any are answered yes then complete the
bottom section.
Schedule F Enter the name and address of each beneficiary and complete each column.

Directions for completing the worksheet using the numbers given in the example .
Line 1 Enter the total value of the New Jersey real estate ($100,000) and the boat ($10,000)
that was kept in New Jersey.
Line 2 Enter the gross estate everywhere ($500,000).
Line 3 Divide line 1 by line 2 to get the ratio of the New Jersey taxable assets to the total (gross)
estate everywhere. All decimals are to be carried to 4 places. The ratio in this example is .2200.
Line 4 Enter the amount from the subtotal line in Schedule "C".
Line 5 Multiply line 4 by line 3. This gives you the portion of the expenses listed on line
4 which will be subtracted from the value of the New Jersey assets listed on line 1.
($1,386)
Line 6 Subtract line 5 from line 1. This gives you a reduced value of the New Jersey
assets that will be taxed. ($108,614)
Line 7 Enter the value of the net estate from IT-NR page 1, line 7. ($479,470).
Line 8 Divide line 6 by line 7. This gives you the ratio of the reduced value of the
New Jersey assets to the total net estate everywhere. The ratio in this example is
.2265.
Line 9 Enter the New Jersey resident tax on the total net estate everywhere. Since the beneficiary
in this estate is a Class "D" beneficiary (the tax rate for a Class "D" beneficiary is 15%)
the tax is computed by multiplying the net estate by 15% ($479,470 X 15%). The result
is $71,920.50.
This is the tax that would be due if the decedent was a resident of New Jersey and all of
his assets listed in the example were located in New Jersey.
Line 10 Multiply the amount on line 9 by the ratio on line 8. This gives you the New
Jersey Non-resident Inheritance Tax $16,290.00. Insert this number on IT-NR page
1, line 11.

WORKSHEET 2 - METHOD 2 RATIO TAX USING NET ESTATE

1 Gross value of New Jersey real estate & tangible personal 1 110,000.00
property
[from Schedule "A" and/or "B(1)"]

2 Total gross estate wherever situate (IT-NR page1, line 5) 2 500,000.00

3 Gross to gross ratio (line 1 divided by line 2) 3 0.2200

4 Total of administration expense, counsel fees and commissions 4 6,300.00

(from subtotal line of Schedule "C")

5 Deduction from gross value of NJ taxable property 5 1,386.00

(Line 4 multiplied by line 3)

6 Net New Jersey taxable property (line 1 minus line 5) 6 108,614.00

7 Net estate wherever situate (IT-NR, page 1, line 7) 7 479,470.00

8 Ratio (line 6 divided by line 7) (not to exceed 100%) 8 0.2265

9 New Jersey Resident Tax on amount reported on line 7 9 71,920.00

Page
 (see page 2 of instructions for classes of beneficiaries and tax rates)

10 New Jersey Non-Resident Ratio Tax (Line 8 multiplied by line 10 16,290.00

9)
(insert this number on IT-NR page 1, line 11)

All decimals are to be rounded to four places.

Page
 WORKSHEET
RATIO TAX USING GROSS ESTATE
3
METHOD 3

DIRECTIONS FOR COMPLETING THE INHERITANCE TAX RETURN USING THE INFORMATION GIVEN IN EXAMPLE 1 ON PAGE 14.
IT-NR - Page 1 Enter the total (gross) estate everywhere on IT-NR page 1, line 5 and line 9.
(IMPORTANT) Schedule A Enter the description and values of only the New Jersey real estate
Schedule B Do not complete this schedule.
Schedule B(1) Enter the description and value of only the boat located in New Jersey
Schedule C Do not complete this schedule.
Schedule E Answer the questions at the top of the schedule. If any are answered yes then
complete th bottom section. If assets are reported on this schedule then advise
whether or not they are included in the total (gross) estate everywhere figure
reported on IT-NR page 1, line 5.
Schedule F Enter the name and address of each beneficiary and complete each column

Directions for completing the worksheet using the numbers given in the example .
Line 1 Enter the total value of the New Jersey real estate ($100,000) and the boat
(10,000) that was kept in New Jersey.
Line 2 Enter the gross estate everywhere from IT-NR page 1, line 5
Line 3 Divide line 1 by line 2 to get the ratio of the New Jersey taxable assets to the total
(gross) estate everywhere. All decimals are to be carried to 4 places. The ratio in this
example is .2200.
Line 4 Enter the New Jersey Resident Tax on the total (gross) estate everywhere. Since the
beneficiary in this estate is a Class "D" beneficiary ( the tax rate for a Class "D"
beneficiary is 15%) the tax is computed by multiplying the gross estate by 15%
($500,000 x 15%). The
result is $75,000. This is the tax that would be due if the decedent was a resident of
New Jersey and all of his assets listed in the example were located in New Jersey.
Line 5 Multiply the amount of line 4 by the ratio on line 3. This gives you the New Jersey Non-Residen
Inheritance Tax. $16,500. Insert this number on IT-NR page 1, line 11

WORKSHEET 3 - METHOD 3 RATIO TAX USING GROSS ESTATE

1 Gross value of New Jersey real estate & tangible personal 1 110,000.00
property
[from Schedule "A" and/or "B(1)"]

2 Value of gross estate both in and outside of New Jersey 2 500,000.00

(from IT-NR page 1, line 5)

3 Gross to gross ratio (line 1 divided by line 2) 3 0.2200

4 New Jersey resident tax on amount reported on line 2 above 4 75,000.00

(see page 2 of the instructions for classes of beneficiaries and tax rates)

5 Ratio tax (line 3 multiplied by line 4) 5 16,500.00

(insert this number on IT-NR page 1, line 11)

All decimals are to be rounded to four places.

Page
WORKSHEET 4
DIRECT TAX
METHOD 4

DIRECTIONS FOR COMPLETING THE INHERITANCE TAX RETURN USING THE INFORMATION GIVEN IN EXAMPLE 2 ON PAGE 1
Schedule A Enter the description and values of the jointly owned New Jersey real
estate Do not include any other real estate.

Note that if the New Jersey real estate was not owned as Joint Tenants
with the Right of Survivorship but was held in the decedent's name alone
and it was specifically devised in the decedent's Last Will and Testament to
the decedent's
nephew this method would be used to compute the tax and the same
information would be entered on Schedule "A".

If the above two mentioned situations did not apply but instead the New
Jersey real estate was transferred to the nephew during the 3 year period
prior to the decedent's date of death this method would be used and the
information regarding the real estate would be entered on the bottom section
of Schedule "E" instead of Schedule "A".

Directions for completing the worksheet using the numbers given in the
example . Line 1 Enter the total value of the New Jersey real estate reported
on Schedule "A". Line 2 This line is left blank since there were no assets
reported on Schedule "B (1)". Line 3 This line is left blank since there were no
assets reported on Schedule "E".
Line 4 Add lines 1, 2 and 3.
Line 5 Enter the New Jersey Resident Inheritance Tax on the amount reported on line
4. Since the beneficiary in this estate is a Class "D" beneficiary (the tax
rate for a Class "D" beneficiary is 15%) the tax is computed by multiplying
the amount
on line 4 by 15% ($160,000.00 x 15%). The result is $24,000.00.
Line 6 Enter the amount from line 5. In these three forms of ownership the New
Jersey Resident Tax and New Jersey Non-Resident Tax is the same.

WORKSHEET 4 - METHOD 4 DIRECT TAX

1 Enter total from Schedule A 1 160,000.00

2 Enter total from Schedule B (1) 2

3 Enter total from Schedule E 3

4 Total of above lines 1, 2 and 3 4 160,000.00

5 New Jersey Resident Tax on amount reported on line 4 5 24,000.00

(See page 2 of the instructions for classes of beneficiaries and tax rates)

6 New Jersey Non-Resident Inheritance Tax - Same as line 6 24,000.00

5
(Insert this number on IT-NR page 1 line 11)

Page
WORKSHEET 5 COMBINATION DIRECT TAX AND RATIO TAX USING NET ESTATE WORKSHEET

Decedent's Name: Decedent's SS NO

For use when there are two (2) or more New Jersey taxable assets and at least one of them is specifically devised
or jointly owned (joint tenants with right of survivorship), or transferred to one or more individuals within three (3)
years of the decedent's death, or to take effect at or after the decedent's date of death and the other New
Jersey taxable assets are held in the decedent's name alone or as tenants in common with another individual.

If the New Jersey taxable property or any amount thereof is specifically devised or jointly owned (joint tenants with
rightof survivorship), or transferred as indicated above, that amount is not subject to the ratio tax but rather is taxed
directly to the devisee(s) or surviving joint tenant(s) at the resident tax rates.

SEE EXAMPLE 3 ON PAGE 15 FOR INFORMATION USED TO COMPLETE THIS WORKSHEET.

1. Direct tax on New Jersey taxable property specifically devised, jointly
owned, or transferred as indicated above. Use worksheet 4, page 19 to
compute the tax for this line…………………………………………………….………… 1 $25,500.00

2. Value of New Jersey taxable property not specifically devised, jointly

owned, or transferred as indicated above……………...…………..……………………. 2 $190,000.00

3. Value of gross estate both in and outside of New Jersey (not including
the New Jersey property specifically devised, jointly owned, or transferred
as indicated above) (IT-NR, Page 1, Line 5 less New Jersey property
described herein from
Worksheet 4, Line 4)…………………………………………………………………… 3 $410,000.00

4. Ratio (Line 2 divided by Line 3) ………………………………………………………. 4 0.4634

5. Total of administration expenses, counsel fees, and commissions

(from subtotal line in Schedule "C")………………………………………….. 5 $10,300.00

6. Amount of Line 5 to be deducted from New Jersey taxable

property not specifically devised, jointly owned, or transferred as
indicated above.
(Line 4 multiplied by Line 5) …………….………………………………………………… 6 $4,773.00

7. Net New Jersey property subject to the ratio tax (Line 2 minus Line 6) 7 $185,227.00
………………

8. Net estate wherever situate (not including the New Jersey property
specifically devised, jointly owned, or transferred as indicated above) (IT-NR,
Page 1, Line 7
less the New Jersey property described herein from Worksheet 4, Line 4) 8 $385,600.00
………

9. Ratio (Line 7 divide by Line 8) (not to exceed 100%)…...........................................9 0.4804

10. New Jersey resident tax on amount reported on Line 8 above

(See Page 2 of the instructions for classes of beneficiaries and tax rates) … 10 $57,840.00

11. New Jersey Non-Resident Ratio tax (Line 9 multiplied by Line 10) 11 $27,786.00
………………….

12. Total New Jersey Non-Resident direct tax and ratio tax (Line 1 plus Line
11)
(Insert this amount on IT-NR page 1, Line 11) 12 $53,286.00
……………………………………..

Page
 NOTE
In the event that any amount of the estate is contingent, the ratio calculated on Line 9 above should
be applied to the resident compromise tax to compute the nonresident compromise tax due.
All decimals are to be rounded to four places.

Page
WORKSHEET 6 COMBINATION DIRECT TAX AND RATIO TAX USING GROSS ESTATE WORKSHEET

Decedent's Name: Decedent's SS NO

For use when there are two (2) or more New Jersey taxable assets and at least one of them is specifically devised
or jointly owned (joint tenants with right of survivorship), or transferred to one or more individuals within three (3)
years of the decedent's death, or to take effect at or after the decedent's date of death and the other New
Jersey taxable assets are held in the decedent's name alone or as tenants in common with another individual.

If the New Jersey taxable property or any amount thereof is specifically devised or jointly owned (joint tenants with
rightof survivorship), or transferred as indicated above, that amount is not subject to the ratio tax but rather is taxed
directly to the devisee(s) or surviving joint tenant(s) at the resident tax rates.

SEE EXAMPLE 3 ON PAGE 15 FOR INFORMATION USED TO COMPLETE THIS WORKSHEET.

1. Direct tax on New Jersey taxable property specifically devised, jointly
owned,
or transferred as indicated above. Use worksheet 4, page 19 to compute
the
tax for this line………..…………………………………………………………………… 1 $25,500.00

2. Value of New Jersey taxable property not specifically devised, jointly owned,
or transferred as indicated above……………………………………………...………. 2 $190,000.00

3. Value of gross estate both in and outside of New Jersey (not

including the New Jersey property specifically devised, jointly owned,
or transferred as
indicated above) (IT-NR Page 1, Line 5 less New Jersey property described herein
from Worksheet 4, Line 4)………………………………………………………………… 3 $410,000.00

4. Ratio (Line 2 divided by Line 3) ………………………………………...………………. 4 0.4634

5. New Jersey resident tax on amount reported on Line 3 above (see page 2
of the instructions for classes of beneficiaries and tax rates) ……………………………….. 5 $61,500.00

6. New Jersey Non-Resident ratio tax on the amount reported on line 3.

(Line 4 multiplied by Line 5) ………………………………………………………….…… 6 $28,499.00

7. Total New Jersey direct tax and ratio tax (Line 1 plus Line 6)
(Insert this amount on IT-NR Page 1, Line 11)…………………………………...….….. 7 $53,999.00

NOTE

In the event that any amount of the estate is contingent, the ratio calculated on Line 4 above should be applied to
the resident compromise tax to compute the nonresident compromise tax due.

All decimals are to be rounded to four places.

Page