Any accountants out there?

I'm taking Federal Taxation in my graduate class and my professor tells me that you must pay NYC income tax if you live substantively in NYC. For example, you cannot claim your summer home in the Hamptons as your primary residence when you still have and live in a SoHo loft 9 months out of the year. My professor joked that you might as well put a sign on your back that says "AUDIT ME." In short, the answer to your question is yes, but confirm with your tax attorney as I'm only a aspiring CPA grad student.

also not an accountant but when I lived part-time in Nassau and part-time in Manhattan (owning residences in both places) my accountant told me to think about where I spent the majority of my time.

He told me that in case of an audit, the tax authorities would look at train tickets, credit card receipts etc.

So I personally would stay away from a strategy like leasing in NYC seven months of the year but not claiming that as your principal residence.

ali r.
DG Neary Realty

NYC has been cracking down heavily on this at least the last 3 years.
I am not an accountant either, but my accountant has told me numerous stories of colleagues with clients who gotten in a lot of trouble, even one going to jail.

"He told me that in case of an audit, the tax authorities would look at train tickets, credit card receipts etc"

yep, as well as phone call history, cable, ez pass, etc.

And if Im not mistaken,if more than 90 or 120 days in NYC, the burden of proof is on you to prove the less than 12 months living in NYC.

Without looking up all the rules, if you own or lease a place here and are working here every day, whether or not you actually sleep in your apartment each night you are considered a resident for NYC purposes.

Had you had the home and worked outside the city and were not in the city at least half the year then you would not be considered a resident.

there's a form which you prorate the # of days lived in NYC so that you pay a prorated city tax amount..

i forget the number NYC IT-11207 or some crap like that .. your accountant should know

No it's not correct. You can even be deemed to be a NYC resident for income tax purposes if you have an "emotional attachment" to New York City, or if you were a resident and plan to return. Thus, if you own property in New York City and rent it out to a third party and never set foot in New York City for 5 years, you can still be considered a resident for tax purposes if you keep the key to the place you own and eventually plan to return to it.

Write to the NYC dept of finance and ask for an opinion.

"You can even be deemed to be a NYC resident for income tax purposes if you have an "emotional attachment""

so all the Westchester NY and NJ primary residents who hold NYC RE pay NYC taxes??

what you smokin brahhhh...

again, NYC days are allocated.. you must be in audit or "advisory" lulz since you've no clue of taxes 101..

http://www.tax.state.ny.us/pdf/2007/fillin/inc/it203b_2007_fill_in.pdf

That only works i believe if you are in two states and physically moved out of state. For NYC i do not believe there is an allocation when you actually still own the real estate and live there. so even if you lived in westchester for 1/2 the year and in the city for 1/2 the year if you are physically in the city monday - friday all year round, your whole income would be taxed as a nyc resident as you are in the city every day and they do not care where the hell you sleep.

As to the attachment comment that i believe is incorrect. If you are renting out the property to a third party, then the apartment income would be taxable in NYC but not your wages if you do not live in the city would not also be taxed.

I'm an accountant and stevejhx is correct about the "emotional attachment" reasoning behind the City's taxation. You don't have to spend one day in the City during the year... if you own or maintain a residence and keep ANY personal effects (including phone and cable service) in that residence, the tax dept. will consider you a resident.

Wrong, hol4. Write to the finance department.

Thank you, lady. I appreciate the support.

Robertson spent 180 days in NYC and didn't have to pay tax
http://online.wsj.com/article/SB125729222815826639.html

ladyjay114--I thought you needed 183 days in NYC AND a permanment place of abode--it's the definiton of permanment place of abode that is difficult to decipher. I was told by an accountant that an advisory opinion to NYCRR 105.20 says it means a period exceeding 11 months. Is it just a matter of weighing the risks of an audit?

wrong stevie aka ladyjay..

how's your rental website doing these days? nice commissions i'd figure..

per that article..

"The stakes were high for Mr. Robertson. If he could prove he spent half of that 366-day year outside of New York City, often at his estate in the wealthy Long Island suburb of Locust Valley, he wouldn't have to pay the tax."

..he won, i'd assume spending 179 days he has some "emotional attachment" to the City, yet he won in court and didn't have to pay NYC tax..

keep pimping the likes of julia to rent now or be leased out forever...form your rental website of cour$e ;)

I'd imagine NYC income tax dodging is fairly widespread, especially among renters. You mostly hear about NYC going after fat cats but I wonder how many middle class tax dodgers come under scrutiny and at what income level it's profitable for the city to pursue them?

Sorry, hol4, I am not ladyjay114 - never heard of her before. Contact management if you want.

Each individual tax case is different - "he won" against the department of finance is often a "he lost," since he had to pay his lawyers to defend him. And then, every case is different. If you're giving tax advice out over the Internet, you'd better be prepared to be sued!

right, now you're equating him with winning by not having to pay the NYC tax despite having "emotional attachment" described by you as referenced by the 179 days spent in the City..

.. yet to you he really "lost" because he had to pay his CPA to save himself $27 million in City taxes..

riiight.. how's the rental website going? nice commis$$$h? :)

I wonder, does columbiacounty live in Columbia County to avoid NYC taxes?

nope.

i've paid through the nose for years.

Yeah, I hate when I laugh and water comes up through my nose.

you're starting to run thin again. work on your material.

Do you still have an emotional attachment to NYC?

are you kidding?

Why is a yes or no question so difficult for you?

because you are treating me like an idiot. if that's what you think, what does it make you to follow around an idiot?

An idiot chaser?

you seem to revel in playing the fool. i don't find it interesting.

Well, let me find another way to amuse you.

don't bother.

i come here out of a sincere interest.

you come here for reasons that i don't follow.

Maybe you follow too closely.

my understanding is that if you have a pied a terre, live in westchester, don't have nyc income and spend less than 183 days in nyc there is no tax. am i wrong???

What if you have a pied a terre, primary residence is in Westchester, spend less than 183 days in apartment but work in NYC? That's our situation.