Weather motivates some; politics motivates others; the ability now to work remotely and spend less on housing costs is also often cited as a reason for wanting to leave… and… yes… taxes are a significant factor in people’s desire to head elsewhere. Whatever the reason, the migration out of NY is significant and likely will continue to rise into the future.
If you are desirous of changing your residence and want to make sure that it is effective for tax purposes, this can be done. However, it does take planning and in many instances, it takes time to make sure that it is done correctly. Especially for those looking to avoid State taxation on a particular transaction, doing things properly and in advance is critical.
While many people believe that all they need to do is spend more than 6 months out of NY… along with things like re-registering their automobiles and their voting, it is not that simple. The rules have been established in such a way that leaving NY takes a great amount of contemplation, planning, and significantly more than just not being here.
While many believe that 183 days is the key dividing line, there is actually a rule that would have someone taxed to NY if they spend more than 30 days in the State!!! Most of the people that we see are in NY for more than 30 days out of the year and thus the other factors that go into that rule become of paramount importance to understand.
While the rules are generally established to promote NY taxation, with proper planning you can move out of the State and not be taxed here. This is not something that can or should be attempted last minute. The rules do not allow for someone to wake up on a random day of the week and declare themselves to no longer be a New Yorker… it is much more complicated than that.
The professionals at Katz Chwat have a tremendous amount of experience handling cases of people that have attempted to move but have been questioned by New York State. More importantly, we have spent a vast amount of time working with clients to help them plan for a future move, advising on the factors that the State will rely on and guiding them through the process.
If, for any reason, you are looking to leave NY, and want to properly abandon NY from a tax perspective, feel free to reach out to Neil (firstname.lastname@example.org), Lara (email@example.com) or Varun (firstname.lastname@example.org) and arrange a consultation.
Posted in: Tax