MsTabbyKats Posted June 1, 2015 Report Share Posted June 1, 2015 Client is retired. There won't be any withholding. But, client has a lot of investment income....including a lot of muni bond income (but not state tax free).Client always lived in NYC...but bought a 2nd home in FL. Client will be splitting time....let's just say 6 months in each although nothing is set in stoneObviously....since FL doesn't have a state tax...and NYC is 11%....client wants to be a FL resident.So...doing a return with the FL address is correct, right? Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted June 1, 2015 Report Share Posted June 1, 2015 If they established FL as the residence, then yes. They should try to document more than half the year in FL in case NY comes sniffing.http://www.stateofflorida.com/residency.aspxI'm surprised states haven't gone after 2nd home owners (or multiple home owners), especially retirees, to prorate their income as a part year resident. They're using the states services, but not paying anything towards them. Maybe the states have and I've just never heard about it. 3 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted June 1, 2015 Report Share Posted June 1, 2015 NY is pretty tough on residents trying to establish a new state as their residence. You have to move and "stick the landing," prove you have closer ties to the new state. Not selling the first home hurts their case. If they can show it's for "vacation," such as on the LI shore or in the mountains/ski areas of upstate NY or a tiny apartment in Manhattan for the theatre or.... They need to show they actually live in FL: doctors, church, friends, hobbies, recreation, part-time job, etc. Have them keep a log. Read the NY residency and domicile definitions in the instructions and in the code. 6 Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted June 1, 2015 Author Report Share Posted June 1, 2015 They rent in NYC...and won't give up the apt because the rent is "very good".They are "testing the waters"....probably will go there full time. It's all hypothetical right now. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted June 1, 2015 Report Share Posted June 1, 2015 "Testing the waters" may not qualify as a NYC nonresident. Read the NY code and apply your clients' situation to see if they are residents or nonresidents. Have them document, document, document. NY's usual response to a resident moving to CT is to request a copy of the CT resident tax return. For a state like FL, they will demand proof and more proof. 2 Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted June 1, 2015 Author Report Share Posted June 1, 2015 Clients don't know what they want. Wife hates cold...and loves the heat...would move there today if possible. Husband hates heat...and hates change. It may be a "let's hop on a plane tomorrow" situation.Oh well...just letting them know the facts.I've had tons of clients moving from NY to "somewhere else". I never had a request from NY for the clients new state of residence tax return. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted June 1, 2015 Report Share Posted June 1, 2015 Maybe my clients get them because they usually remain with the same NY employer but move to CT or PA. I have seen fewer NY letters since 9/11 when NYers fled to CT; but most of their employers also moved to Greenwich or Stamford or other CT cities. Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted June 1, 2015 Author Report Share Posted June 1, 2015 Maybe my clients get them because they usually remain with the same NY employer but move to CT or PA. I have seen fewer NY letters since 9/11 when NYers fled to CT; but most of their employers also moved to Greenwich or Stamford or other CT cities.Oh...this may have more to do with NYC tax...and people left the city...but employers still withheld for NYC. Then you have to prove you live elsewhere. I've had that happen..... Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted June 1, 2015 Report Share Posted June 1, 2015 One way to show you are serious about changing domicile is to change driver's license, car registrations, and voter registration. If they change their minds in a few years, those things can be changed back but are easier to "prove" since there is no state return for FL than changing doctors, etc. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted June 2, 2015 Report Share Posted June 2, 2015 NY and NYC are especially notorious for fighting high-income taxpayers moving away. One example, after Rush Limbaugh moved to FL, NY audited him every year for 12 yrs, requiring him to prove that he was spending more time in FL than he spent in NY. That was in addition to changing his voter registration, car registration, doctors, etc.http://www.huffingtonpost.com/2009/04/09/rush-limbaugh-new-york-ha_n_184926.htmlhttp://www.rushlimbaugh.com/daily/2011/02/11/judge_out_of_state_ny_property_owners_must_pay_ny_income_tax 1 Quote Link to comment Share on other sites More sharing options...
MDEA Posted June 2, 2015 Report Share Posted June 2, 2015 You mentioned they have low rent. The landlord will look to void the rent control if they move their residence to FL.Happened to one of my clients rent went from $1100 a month to $4000. They moved permanently to FL. 1 Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted June 2, 2015 Author Report Share Posted June 2, 2015 I said "low"...but not rent control. Rent stabilized...but I'm sure the landlord would love for them to move.I believe they pay about $2000....apt above them is being renovated (tenant of about 50 years died) and will rent for about $5000!The rule of thumb for NYC is if you have a low rent....they have to carry you out. Quote Link to comment Share on other sites More sharing options...
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