State Tax ResidencyTwo homes? Which state gets the income and estate tax? The one with the higher tax rate? Both?
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State Tax ResidencyTwo homes? Which state gets the income and estate tax? The one with the higher tax rate? Both?
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Many of us have homes in one state and a second home in another, and maybe more, each of which may want to collect income or estate tax from us. Throw on top of that those in cities such as New York City, that has its own tax for city residents. In some cases that other state might be Florida or another state without any tax. Who can claim you as a resident? That question carries with it a large dollar figure in many cases, especially where the other state might be a no-tax state like Florida. Some answer the question with confidence that it is the place where one spends more than 183 days. And that is often the wrong answer. The questions are generally more complicated: Where is your domicile? What even is domicile? Where is your permanent place of abode? Is there more than one? Can there be?
When days matter what days count when counting to 183? One may be tempted to fudge a bit, after all, who would know? Really want to fudge? Make no phone calls (including mobile), don't use EZ Pass and don't use credit cards or the ATM in the place where you shouldn't be. Sounds easy? The real answer is to know what matters in these determinations. Flaster Greenberg PC can help you plan into it accordingly so you do feel tempted to fudge the facts and when you tell the truth you get the result you should get. And when a state feels slighted in the tax department then you need Flaster Greenberg PC with the appropriate experience to represent you in the audit and possible subsequent legal battle. |
State tax residency, New York tax, New Jersey tax, Florida residency,
See also: Income Tax Planning and Estate Planning |
David S. Neufeld, Shareholder, Flaster Greenberg PC
1810 Chapel Avenue West | Cherry Hill, NJ 08002 856.382.2257 | david.neufeld@flastergreenberg.com Internationally Recognized Tax and Estate Planning Attorney |