New York City Domicile
We have blogged frequently on domicile issues and have even written a guidebook on how to change your domicile from New York or New Jersey to Florida. In that regard, we wanted to make note of an article on February 23 in The New York Times (see http://www.nytimes.com/2011/02/24/nyregion/24taxes.html?_r=2) which addressed New York City domicile issues. The rules on whether you are taxed as a New York City resident are similar to the rules regarding whether you are a New York State resident. An individual will be taxed as a New York City resident if (i) he or she is domiciled in New York City, or (ii) he or she is not domiciled in New York City, but maintains a permanent place of abode in New York City and spends more than 183 days in New York City. How is New York finding New York City taxpayers? In addition to its fleet of auditors, the 2010 New York income tax return adds a new question asking New York taxpayers who maintain living quarters in New York City to provide the number of days spent in New York City. Taxpayers who are close to 183 days of residence should be certain to keep accurate and detailed records so that they are properly classified.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.