NewsOwning residences in more than one state is becoming increasingly common. However, individuals navigating this circumstance must exercise caution to avoid inadvertently violating state tax regulations. Michelle E. Espey spoke with The Wall Street Journal regarding what a taxpayer should expect if they are audited.
From the article:
If an auditor comes calling, the burden is on taxpayers to prove they aren’t a statutory resident or domiciled in that state, says Michelle Espey, partner at law firm Farrell Fritz in Uniondale, N.Y., who counsels clients on a variety of tax matters. These audits are all fact-specific and they can be time-consuming, she says. At the least, people should expect an audit inquiry, especially when moving from a high-tax state such as New York or California and claiming a new domicile elsewhere.
Read the full article here:
How to Make Sure Your Second Home Doesn’t Become a Tax Trap – WSJ
