It is no surprise that many individuals choose to have a second home in a state as wonderful as New York. While having access to a New York dwelling certainly has its perks, it might also come with the pitfall of subjecting an individual to New York State personal income tax (“Tax”) on worldwide income. Please note that while the following discussion focuses on state guidance, the discussion is also applicable to statutory residency issues for New York City personal income tax.
Under New York tax law, an individual that establishes a domicile outside of New York will nonetheless be deemed a “statutory resident” of New York—and thus subject to Tax as a resident—if he or she (1) maintains a permanent place of abode in New York for substantially all of the taxable year (generally, at least 11 months) and (2) spends more than 183 days in New York during the taxable year. This article discusses the meaning of a “permanent place of abode” and common scenarios that might complicate the determination as to whether a dwelling is deemed a permanent place of abode for Tax purposes.
To read more, please visit nysscpa.org.