Three tax law experts gave advice on preparing for a home tax audit in New York during a recent webinar hosted by Schneps Media.
Many people attempt to change their state of residence in hopes of avoiding New York State taxes but underestimate the lengths they’ll need to go to establish residency in another state. Tax attorney Karen J. Tenenbaum shared her expertise on officially becoming a resident of a different state.
“People think they just have to change their license and voter registration,” Tenenbaum said. “But New York State will look at many different factors, including business activities, time spent, the location of sentimental items, and family connections.”
She also explained that the implications of Covid-19 will have an impact on tax audits because people moved from their primary residence and were able to work remotely.
Next, Andy Presti, of Presti and Naegele, spoke about the importance of New York State sourced income, including wages earned in New York, certain bonuses paid after leaving New York, income from rental properties, stock options earned, untaxed install payments, and other sources of income.
“It’s important to know where your income is sourced. You will continue to pay New York income tax on that income. New York does not want to give up on taxing that income,” Presti said. “You’re not going to alleviate taxes if you work in New York.”
Finally, attendees heard from Eric Donner, founder of Six Months and a Day, a company that helps their clients save on taxes.
“There’s a misconception out there that all you have to do is to live somewhere for six months and a day, or one hundred and eighty-three days; it’s just not true. That’s why we named our company ‘Six Months and a Day,’” Donner told attendees. “Residency audits can be complex, highly invasive, and time-consuming. You really need to know the rules and the playing field.”
To learn more about how professionals like Tennebaum, Presti, and Donner can help you save on taxes, view the webinar on Youtube.
To view more webinars hosted by Schneps Media, the parent company of the Long Island Press, visit schnepsmedia.com/webinars.