Updated October 24, 2026. Quick answer: Line 19 of the 2025 NJ-1040 is net gains or income from disposition of property. The booklet’s instruction is “Complete Schedule NJ-DOP and enter the amount from line 4.” “If the amount on line 4 is a loss, make no entry on line 19.”
What this line asks
The line is labeled Net Gains or Income From Disposition of Property. Its instruction is short: “Complete Schedule NJ-DOP and enter the amount from line 4.” The schedule itself begins “Report your capital gains and income from the sale or exchange of property.” and adds “You can deduct the expenses of the sale and your basis in the property from the sales price.”
The state-level view is in New Jersey capital gains and New Jersey retirement taxes; the federal counterpart is Form 1040 line 7.
Who it applies to
The conditions the booklet prints for line 19 are about what stays off Schedule NJ-DOP: “Gains/losses from the disposition of property owned by a sole proprietorship, a partnership, or an S corporation. Report on Schedule NJ-BUS-1;” and “Gains/losses from the disposition of property owned by an estate or trust (other than a grantor trust). Report on line 26.”
For a home sale, the schedule says “Capital gain is calculated the same way as for federal purposes.” and “Any amount that is taxable for federal purposes is taxable for New Jersey purposes.” See also New Jersey home sale profit.
What the instructions say to enter
| Step | What the booklet says |
|---|---|
| Line 19 | “Complete Schedule NJ-DOP and enter the amount from line 4.” |
| If line 4 is a loss | “If the amount on line 4 is a loss, make no entry on line 19.” |
| Schedule line 1 | “List any New Jersey taxable transaction(s) as reported on your federal Schedule D, indicating the gain or loss for each transaction in column f.” |
| Schedule line 2 | “Enter your capital gains distributions from Form 1099-DIV(s) or similar statement(s).” |
| Schedule line 3 | “Enter the net gains or income less net losses from disposition of property not included on lines 1 or 2 of Schedule NJ-DOP.” |
| Schedule line 4 | “Enter the total of the amounts listed on line 1, column f and lines 2 and 3, netting gains with losses.” |
| Enclosure | “Enclose Schedule NJ-DOP with your return.” |
Basis and netting
The schedule explains which cost figure to use: “In general, when calculating your gain or loss, you will use the cost or adjusted basis that you used for federal purposes.” It continues “However, in certain situations, you may use a different basis.”
It is also direct about losses: “There is no distinction between active and passive losses for New Jersey purposes.” and “You cannot carry back or carry forward such losses when reporting income on Form NJ-1040.”
Line 2 of the schedule excludes some fund gains: “Do not include capital gains from a New Jersey Qualified Investment Fund that are attributable to qualified exempt obligations or gains from mutual funds to the extent attributable to federal obligations”. Dividends from the same kinds of funds are read on NJ-1040 line 17.
Where the result goes next
The schedule closes the loop: “Enter this amount on line 19, Form NJ-1040.” “If the netted amount is a loss, enter zero here and make no entry on line 19, Form NJ-1040.”
For the other lines on the return, see the New Jersey NJ-1040 line by line guide.
Part-year residents
The booklet prints one sentence at the end of the schedule: “Include only the amounts you received while you were a resident of New Jersey.”
Edition and line numbers
This page reads the 2025 NJ-1040 New Jersey Resident Return booklet, the current file the New Jersey Division of Taxation served on 2026-10-24. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Entering a net loss on line 19. The booklet says “If the amount on line 4 is a loss, make no entry on line 19.”
- Putting partnership or S corporation property sales on this schedule. The booklet says “Report on Schedule NJ-BUS-1;”
- Carrying a loss to another year on this return. The booklet says “You cannot carry back or carry forward such losses when reporting income on Form NJ-1040.”
Related: New Jersey capital gains, New Jersey retirement taxes, Form 1040 line 7, and New Jersey home sale profit.
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Answer againSources
- 2025 NJ-1040 New Jersey Resident Return booklet (instructions and forms), New Jersey Division of Taxation: www.nj.gov
- 2025 Form NJ-1040 New Jersey Resident Income Tax Return, New Jersey Division of Taxation: www.nj.gov
Read from the state revenue documents linked above on October 24, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.