X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Welcome to Florida sign board.New York’s high income tax rates have prompted some high-income taxpayers to relocate to lower-tax states, such as Florida and Texas. Consequently, fiscal revenues in New York have suffered and, not surprisingly, audits of taxpayers asserting a change in domicile have increased. New York conducts roughly 3,000 nonresidency audits annually and has collected approximately $1 billion in revenue between 2010 and 2017 as result of these audits. The Tax Cuts and Jobs Act of 2017 capped the federal income tax deduction at $10,000 for state and local income taxes, which will likely result in an increase in the number of high income taxpayers changing domicile to a low tax state.

This article is intended to provide a legal analysis of change of domicile under New York law and its residency audit process. While this article focuses on relocation to Florida, a state which imposes no personal income tax, issues and analysis are similar in the case of other low-tax destinations.

Want to continue reading?
Become a Free ALM Digital Reader.

Benefits of a Digital Membership:

  • Free access to 3 articles* every 30 days
  • Access to the entire ALM network of websites
  • Unlimited access to the ALM suite of newsletters
  • Build custom alerts on any search topic of your choosing
  • Search by a wide range of topics

*May exclude premium content
Already have an account?

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.