Moroney v. Director, Division of Taxation

The opinion of the court was delivered by

YANNOTTI, J.A.D.

These related appeals concern the manner in which net gain from the sale or disposition of rental property should be determined under the New Jersey Gross Income Tax Act, N.J.S.A. 54A:1-1, et seq. The Act provides in pertinent part that, in determining net gain or loss, the basis of the property shall be the adjusted basis used for federal income tax purposes. N.J.S.A. 54A:5-1(c). Relying upon the Supreme Court’s decision in Koch v. Director, Division of Taxation, 157 N.J. 1, 722 A.2d 918 (1999), the Tax Court held that the federal…