Court decision a win for owners of second homes in NYC

Ruling on residency seen costing city and state $300M in taxes

New York /
Feb.February 21, 2014 02:40 PM

Just because you own property in New York doesn’t mean you have to pay New York taxes, a high court has ruled.

The New York State Court of Appeals declared that tax auditors must prove out-of-state residents use their New York properties as their own homes in order to charge city and state income taxes.

The state is expected to to lose a large share of the $300 million in annual revenue assessed through residency audits, tax lawyers told the Journal, the Wall Street Journal reported.

“It is an important decision that could significantly alter the way New York taxes people alleged to be residents,” said Jack Trachtenberg, a tax lawyer at Reed Smith LLP and former taxpayer advocate, to the Journal. Previously, New Yorkers who lived at least 183 days in the state were considered residents.

The decision is a big win for professionals with second-homes or investment properties in New York City, just as the city is about to hike rates by 3.8 percent for single-family homes and 5.5 percent for co-op owners, as The Real Deal previously reported. [WSJ] — Angela Hunt


Related Articles

arrow_forward_ios
REBNY's James Whelan (Photos via iStock; Whelan by Anuja Shakya)

NYC lost $1.2B in real estate tax revenue

NYC lost $1.2B in real estate tax revenue
Sen. Brad Hoylman (Getty; iStock)

State pols make pied-à-terre tax a priority for 2021

State pols make pied-à-terre tax a priority for 2021
Steven Mnuchin (Getty)

Trump plan would let real estate firms avoid SALT deduction cap

Trump plan would let real estate firms avoid SALT deduction cap
Mayor Bill de Blasio (Getty, iStock)

Commercial property tax delinquencies jump 50%

Commercial property tax delinquencies jump 50%
President Donald Trump and former Vice President Joseph Biden (Getty, iStock)

Election puts real estate’s generous tax breaks in spotlight

Election puts real estate’s generous tax breaks in spotlight
CBRE CEO Bob Sulentic; the firm has shifted its global HQ from LA to Dallas. (CBRE, Getty)

“Sad day” in LA: CBRE’s corporate exit latest blow to dented office market

“Sad day” in LA: CBRE’s corporate exit latest blow to dented office market
From June through August, sales taxes collected from the city’s accommodation businesses fell $2.2 billion short of the year-ago total. (iStock)

Business at city hotels down a stunning 90%

Business at city hotels down a stunning 90%
Gov. Phil Murphy (left) and billionaire David Tepper

Does taxing the wealthy really drive them away?

Does taxing the wealthy really drive them away?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...