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This thing of rich people taking Florida residency to avoid NY taxes is nothing new. Fact is,many of them wind up throwing in the towel and "officially" moving back after they realize that they are not able to get away with claiming Florida residency and spending more than 1/2 the year in NY.They get subjected to what's called a "residency audit". The Dept of Taxation and Finance tracks their airline activity,hotel and restaurant reservations,car and apartment rentals,credit card use,etc and makes them prove they were not in NY at least 6 mos out of the year.It's hellish.It's typical IRS kind of stuff where you have to prove your innocence.Often,they find being forced to keep out of NY most of their lives too self limiting and stop the charade and "move" back.
"In order to determine whether these taxpayers should be taxed as NYC residents, in each instance, the practitioner must examine all the facts closely. The city considers numerous factors and the burden of proof is on the taxpayer. The wise practitioner will advise his client about steps to take before a problem arises, and important records to maintain.
The basic rule is: if a person is (1) domiciled in the city; (2) has a permanent place of abode there; and (3) and spends more than thirty days in the city; then he is a city resident,d all his income worldwide is subject to NYC tax. If he is not domiciled in the city, then the person can still be taxed as a statutory resident if he has a permanent place of abode in the city, and spends more than 183 days in the city. (There are particular rules for certain circumstances, such as for foreign residents and military personnel, which are beyond the scope of this article.)
If the taxpayer historically lived in the city, and still has a residence there, the government may well challenge an assertion that the taxpayer is domiciled elsewhere. Domicile can be thought of as a person’s home, the place to which he intends to return when absent. The government tries to measure this emotional connection by looking at external indicia. Your client can protest vigorously that Florida is his real home; but if he cannot prove the facts to show that he changed his domicile to Florida, he will be subject to city tax.
In order to change domicile, the person must “leave and land,” that is, he must show that the city is no longer his domicile, and that he has established a new domicile. The city looks at four major factors: home, that is, the nature and use of each dwelling; business involvement; time spent in each place; and items near and dear. If there is no definite conclusion based on those four factors, then the city will also look at a fifth factor, family connections.
And the above policies have nothing to do with the current mayor.
U-N-B-E-L-I-E-V-A-B-L-E. If this is the attitude of de Blasio and his administration, the city is going right down the toilet. It's not about real estate prices. It's about tax revenue to the city!
There is an incredible statistic about the huge percentage of income taxes NYC gets from the richest several thousand families. So if they leave, it means less money for teachers, cops, sanitation and other vital services, and/or taxes raised on everybody else.
The jealousy, envy and resentment of the wealthy is beyond belief and just flat-out ridiculous. Wish we had more billionaires in NYC. It would mean more tax revenue, better services, and less of a tax burden on everyone else.
And it would not mean higher real estate prices in the vast majority of the city. The wealthy do not live in Staten Island, The Bronx, Queens, the vast majority of Brooklyn and half of Manhattan. So the prices of condos on Central Park West would go up. Who cares?
ARGGH!
Don't get upset, just put clueless, bad posters (many of whom like the one you quoted don't even live in NYC anymore) on ignore, like I did. The facts:
"BLOOMBERG: One percent of the people that live in the city, the households that file in the city pay something like 50% of the taxes. In a city that's about 40,000 people..."
So if a few hundred out of those 40,000 left, it would have a significant impact on the city's tax intake. But the clueless and the liberals don't like to hear such facts, they just want more handouts, so this country will resemble their dream place of Venezuela, where people are suffering from shortages of everything from milk to bathroom tissue.
No. You want so bad for that to be true but it's false. Show me your source. Actually, don't waste your time because there is no source. You're wrong and it's sheer stupidity. That link details the address of headquarters per hedge fund firm, not offices. So you're telling me a hedge fund based in CT would list their headquarters as Manhattan and pay high New York taxes for no reason? So what would be the point of operating in CT if you're already paying NY's high taxes? You don't see how that makes no sense? Vast majority of hedge funds are in Manhattan. Period.
It's too bad that pretenders like this come in with such strong attitudes, but few facts.
Do you have any idea how many hedge funds are privately managed and do not appear on business lists? There are huge numbers of asset management, private equity, fund of funds, hedge funds, etc., that do not publish themselves - and intentionally so. That also does not include family offices and planning firms that are not going to appear in Barron's or some other publication/website. Many of them pay people to keep them off of the radar.
I should also point out that many of the funds that list an office/HQ in NYC are actually incorporated in the Caymans or some other offshore locale. Explaining that might be more confusing to someone like you, so I won't bother...
It is hilarious to read a post like this from someone far, far outside my industry, just too funny.
Don't get upset, just put clueless, bad posters (many of whom like the one you quoted don't even live in NYC anymore) on ignore, like I did. The facts:
"BLOOMBERG: One percent of the people that live in the city, the households that file in the city pay something like 50% of the taxes. In a city that's about 40,000 people..."
So if a few hundred out of those 40,000 left, it would have a significant impact on the city's tax intake. But the clueless and the liberals don't like to hear such facts, they just want more handouts, so this country will resemble their dream place of Venezuela, where people are suffering from shortages of everything from milk to bathroom tissue.
They've bought into the Occupy Wall Street BS. In fact, if you asked the OWS squatters what Wall Street companies do, 90% could not give you a half-way intelligent answer (stealing money from the 99% is not half-way intelligent).
Let's put it another way. If 10,000 Americans (that's just a half-full Madison Square Garden) each made $1 billion this year, and paid 35% of their income in taxes, it would be a total of $3.5 trillion. The federal budget this year is $3.7 trillion.
I know that's absurd, because the top 10,000 are not going to make close to $1 billion in a year. But wouldn't that be a wonderful if it could happen?
Study the magic of U.S. GAAP ... the accounting practices in the U.S. are so flexible (aka shady), that the wealthy's accountants can legally set it up so that the wealthy pay less than the middle class do because the balance sheet balances out to almost no profit (income) every year. I saw it myself working in a big accounting firm with wealthy clients at tax time. Then take into account how the IRS Tax Codes benefit businesses way over people and the wealthy know this (and set themselves up as LLCs, Inc.'s etc. to do the heavy lifting of their income), plus how wealth obtained by investment instead of working is taxed at a lesser rate and that is how most of the wealthy make their money and they have it all over the rest of us. (Remember, Warren Buffett legally pays less income taxes than his secretary does ... and he admitted it.) Every single year there is also a list of giant corporations that pay little or nothing in income tax. Go google it. Pay attention people to who is really paying any taxes at all! Usually it ISN'T the wealthy or the big corporations as they have a way around it!
You figured out what I do for a living.
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The wealthy of NYC are not leaving their fabulous lairs anytime soon because of DeBlasio.
They don't have to, their primary residence is not in NYC, so they do not have to pay residence income tax here, nor do they have to pay income tax rates when all of their income is dividends from the partnerships they own, some coming in as carried interest distributions.
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But you can expect more of the middle class to flee out of sheer desperation due to increased oppressive taxation because they do not have access to the tax advantages the wealthy do.
Correct.
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The poor will stay and continue to populate, with even more poor relocating here due to the increasing benefits, further incentivized to move to NYC and NYS as other states make draconian benefit cuts to get rid of them.
Thanks for cheering a real estate collapse in NY. Is that so you can afford to come back? If real estate collapsed, the homeowners of the city would hopefully get off of their ass and vote in another Bloomberg to fix it. Deblasio will certainly be a 1 term mayor if real estate prices begin to drop.
Whoever espouses for a real estate collapse has no clue about basic economics. Oh, that's right - that poster is on ignore, for good reason.
They've bought into the Occupy Wall Street BS. In fact, if you asked the OWS squatters what Wall Street companies do, 90% could not give you a half-way intelligent answer (stealing money from the 99% is not half-way intelligent).
Let's put it another way. If 10,000 Americans (that's just a half-full Madison Square Garden) each made $1 billion this year, and paid 35% of their income in taxes, it would be a total of $3.5 trillion. The federal budget this year is $3.7 trillion.
I know that's absurd, because the top 10,000 are not going to make close to $1 billion in a year. But wouldn't that be a wonderful if it could happen?
It has nothing to do with OWS. I am not responsible for NYC's tax intake. I never have been, and I never will be.
So the issue NEVER had anything to do with my life, and NEVER will have anything to do with my life. Period.
Clearly you and some other hysterical posters have money in the NYC real estate market and fear losses. I on the other land have absolutely nothing to lose. Come up with one million nightmare scenarios, and I will not care.
Why do you think de Blasio even won the election in the first place? I hope you don't think people were concerned about the city's tax coffers when they voted. Newsflash for you, they weren't.
And if your nightmare scenario happens, you will just have to deal with it. Life will go on and so will NYC.
Oh, and according to a NY Times article I posted, rents in Manhattan have fallen several months. YESSSS! Will this spread to the rest of the city? I can only HOPE! We'll have to wait until a year to see if this trend is sustained or if it is a blimp. But if its long term, praise JESUS!
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U-N-B-E-L-I-E-V-A-B-L-E. If this is the attitude of de Blasio and his administration, the city is going right down the toilet. It's not about real estate prices. It's about tax revenue to the city! 
