Tax Residency: Snowbird Counsel

While purchasing a vacation home in a state tax haven such as Florida may ameliorate the ‘winter blues,’ it will do little to improve your overall state tax savings.

Tax savings as hot as the Florida sun

More importantly, incorrectly reporting yourself and your spouse as a non-resident could cost you tens of thousands in unreported tax, interest and penalties if audited by the New Jersey or New York state tax authorities. However, when structured correctly, a change in domicile can result in substantial tax savings by residing in a state that levies no personal income or estate tax.

Plan proactively with our Pre-Audit Package

Whether it is guiding clients through the process of establishing their domicile in Florida or other non-tax or low tax states, filing for Florida Homestead or assisting with the painstaking organization of your day count records, utilizing our firm’s ‘pre-audit package,’ our Snowbird Counsel has a wealth of knowledge in residency and domicile matters. We regularly advise clients on how to properly allocate income among several states and prepare clients to be in the best possible position to obtain a ‘no change’ letter if audited by the state tax authorities.

A specialized and sophisticated team

Our team, a specialized subset of our Tax Controversy attorneys, is further supported by a team of sophisticated business and estate planning tax attorneys licensed in New Jersey, New York and Florida, with decades of collective experience working together.

Our attorneys are well versed in each state’s tax and estate laws and routinely advise clients on how to best structure their personal and business affairs to maximize state and local income and estate tax savings. Changes in federal tax laws, including those enacted under the Tax Cuts and Jobs Act limiting the deduction of state and local taxes to $10,000, has created an increased need for tax counsel with an expertise in residency planning to assist those looking to take advantage of the potential benefits of Florida residency.

Strategic advice when disputes arise

For tax disputes that stem from a change of residency, domicile or income allocation, we rigorously represent those facing state estate and income tax assessments. We seek to make the audit process less stressful, helping our corporate and individual clients produce the necessary documentation while advocating on their behalf. If necessary, we will continue to represent you in an administrative appeal or in State tax Court to bring about a favorable resolution to your tax matter.