Judge: Out-of-State NY Property Owners Must Pay NY Income Tax
Some of you, if you haven’t heard this… (sigh) The best way is to just tell you. “Connecticut and New Jersey residents with [property in New York] are about to get a nasty surprise: New York state wants more taxes from them.” Connecticut and New Jersey residents, but this would be Florida residents; this would be anybody who used to live in New York or anybody who owns property in New York but does not live there. “A New York court ruled last month that all income earned by a New Canaan, Conn., couple is subject to New York state taxes because they own a summer home on Long Island they used only a few times a year. They have been hit with an additional tax bill of $1.06 million” to the state of New York.
They live in Connecticut. They’ve got a place in the Hamptons they visit three or four times a year. Every dollar of income earned throughout the year is subject to New York residential income taxes now. “Tax experts and real estate brokers say this ruling could boost the tax bill for thousands of business executives who own New York City apartments they use only occasionally. It could also hurt sales in the Hamptons and New York’s other vacation-home communities. ‘People will think twice about spending any summer time in New York,’ says Robert Willens, a New York-based tax consultant. ‘The amount of tax they could be subjected to is likely to outweigh the benefit.'”