I've been thinking about buying in FFC: 1. Taxes --this is a big deal. Due to taking over my family's company, there will be a 10% difference in income tax between CT and NYC. 2. Kids- I don't have any yet but planning on having one in the next five years. I would consider moving to BPC or Tribeca but I really like the UWS. Does higher test scores in CT mean better education for your kids? I value... [more]
I've been thinking about buying in FFC:
1. Taxes --this is a big deal. Due to taking over my family's company, there will be a 10% difference in income tax between CT and NYC.
2. Kids- I don't have any yet but planning on having one in the next five years. I would consider moving to BPC or Tribeca but I really like the UWS. Does higher test scores in CT mean better education for your kids? I value diversity. From what I can see, I'd probably be okay with Westport but it is hardly diverse.
3. Space- It would feel nice to own a house with lots of space. I've accumulated lots of crap and it is all in storage. You get more bang for your buck in CT but unloading anything in FFC is impossible beyond a certain price point. From what some large estates even by the water ie Greens Farms have lost quarter percent in the 7-10 years.
What I love about NYC: Everything! Except for the three items mentioned above. From the arts, culture, entertainment, diversity, shopping, convenience ...etc. I'll be honest, it boils down to the income taxes.
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Response by Squid
about 7 years ago
Posts: 1399
Member since: Sep 2008
I don't speak CT... What's FFC? Fairfield County?
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Response by Aaron2
about 7 years ago
Posts: 1698
Member since: Mar 2012
If the savings from income tax offset the increased costs of commuting into the city, the expense of owning and maintaining a car or two, the increased home and yard maintenance and insurance costs, and your time spent in commuting (and thus being in between doing fun things in the city and being home), then move.
You say it's all about the income taxes, which means you have prioritized building wealth over convenience, entertainment, shopping, and culture (and diversity: almost any 20 contiguous blocks of Manhattan beat the diversity of entire counties of CT). Live your priorities!
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Response by KeithBurkhardt
about 7 years ago
Posts: 2986
Member since: Aug 2008
Why don't you go rent a house there for a year? I know it's a hassle and a bit of an inconvenience, however it'll give you absolute clarity in making such an important decision. Make it into a little Adventure....
Keith Burkhardt
TBG
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Response by Squid
about 7 years ago
Posts: 1399
Member since: Sep 2008
and expanding on what Keith suggests re renting, keep in mind that we will very likely see a drop in prices as changes in the SALT tax deduction take hold. Especially in areas where NYC folks keep second homes. So may make sense to watch and wait before pouncing in on a purchase.
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Response by 30yrs_RE_20_in_REO
about 7 years ago
Posts: 9877
Member since: Mar 2009
Agree with Keith.
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Response by 300_mercer
about 7 years ago
Posts: 10570
Member since: Feb 2007
Curious how there is a difference of 10 percent in income taxes. I though it will only be city tax difference of 4 percent.
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Response by ximon
about 7 years ago
Posts: 1196
Member since: Aug 2012
According to this study, the total tax burden for CT vs. NYC is about the same when counting all taxes, in particular the higher property taxes in CT. Of course, this depends on which part of CT you live in but Westport and Green Farms in particular have got to be at the very high end of the range. And if you continue to commute to New York City, your total taxes will be even higher.
I believe you do not pay nyc tax if you only commute to the city for work.
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Response by ximon
about 7 years ago
Posts: 1196
Member since: Aug 2012
Hmmm. According to the article, "Connecticut residents who work in New York City pay income taxes to both the city and New York State". But I also saw that the so-called commuter tax was repealed in 1999. I guess the first author had their info wrong?
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Response by ximon
about 7 years ago
Posts: 1196
Member since: Aug 2012
Further research: There is a commuter tax for "non-resident employees of the City of New York" for applicable to NYC public employees who reside outside of the five boroughs. There is also a payroll tax known as the Metropolitan Commuter Transportation Mobility Tax of 0.34%.
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Response by 300_mercer
about 7 years ago
Posts: 10570
Member since: Feb 2007
So that confirms the basic difference is just City tax of 4 percent. There was a time CT state taxes were much lower than NY state taxes but not any more and CT is a fiscal disaster. Migration of companies and residents is putting further upward pressure on property taxes and state taxes in CT. GE almost gone from CT. UBS almost gone from CT. New hedge funds are not opening in Greenwich. Young two income families do not want to commute.
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I don't speak CT... What's FFC? Fairfield County?
If the savings from income tax offset the increased costs of commuting into the city, the expense of owning and maintaining a car or two, the increased home and yard maintenance and insurance costs, and your time spent in commuting (and thus being in between doing fun things in the city and being home), then move.
You say it's all about the income taxes, which means you have prioritized building wealth over convenience, entertainment, shopping, and culture (and diversity: almost any 20 contiguous blocks of Manhattan beat the diversity of entire counties of CT). Live your priorities!
Why don't you go rent a house there for a year? I know it's a hassle and a bit of an inconvenience, however it'll give you absolute clarity in making such an important decision. Make it into a little Adventure....
Keith Burkhardt
TBG
and expanding on what Keith suggests re renting, keep in mind that we will very likely see a drop in prices as changes in the SALT tax deduction take hold. Especially in areas where NYC folks keep second homes. So may make sense to watch and wait before pouncing in on a purchase.
Agree with Keith.
Curious how there is a difference of 10 percent in income taxes. I though it will only be city tax difference of 4 percent.
According to this study, the total tax burden for CT vs. NYC is about the same when counting all taxes, in particular the higher property taxes in CT. Of course, this depends on which part of CT you live in but Westport and Green Farms in particular have got to be at the very high end of the range. And if you continue to commute to New York City, your total taxes will be even higher.
http://time.com/money/4187786/states-highest-taxes-ny-nj-ct/
If
I believe you do not pay nyc tax if you only commute to the city for work.
Hmmm. According to the article, "Connecticut residents who work in New York City pay income taxes to both the city and New York State". But I also saw that the so-called commuter tax was repealed in 1999. I guess the first author had their info wrong?
Further research: There is a commuter tax for "non-resident employees of the City of New York" for applicable to NYC public employees who reside outside of the five boroughs. There is also a payroll tax known as the Metropolitan Commuter Transportation Mobility Tax of 0.34%.
So that confirms the basic difference is just City tax of 4 percent. There was a time CT state taxes were much lower than NY state taxes but not any more and CT is a fiscal disaster. Migration of companies and residents is putting further upward pressure on property taxes and state taxes in CT. GE almost gone from CT. UBS almost gone from CT. New hedge funds are not opening in Greenwich. Young two income families do not want to commute.