Moving from NYC to NJ - How to Reduce Income Tax Audit Risk? (Hudson: apartment)

[cosmonetropic]

I own a multi-family property in NYC( 3 years) that I rent out for income, residence for my elderly parents, and currently live in. I claim the mortgage interest deduction every year. I currently live here as well.
I am headquartered at the NYC office but I telecommute about 50-75% of the time. I also travel to my company's NJ office quite frequently to work.

I am planning to move to NJ this year (Jersey city), just across the Hudson River, renting an apartment with a roommate. I am planning to change my mailing address for credit cards, banks, work, etc, but keeping everything else the same (driver license, etc)

Based on the regulations, I can file as a NJ resident working in NYC. I will file both NJ resident and NY non-resident tax returns, and avoid NYC income tax.

If it comes to auditing, I will only have my credit card/bank statements and lease as proof of my new residence. Will that be enough?

How do I reduce the risk and pain of an audit in the first place? I was told it was a pain in the ass even if the move is legit because the proof of burden is on the taxpayer.

[BBMW]

If you're living in NJ, you're going to have to get an NJ drivers license and insure your cars over there. If you don't, at some point your going to get found out, and have problems. If you get into an accident, and need the insurance, you'll have big problems. If you have a NY license, you'll also likely have to file as a NY resident. If not, you'll have the NYS Dept of Taxaxtion crawling up your a$$.

You can keep the property. Rent out the two units that your parents don't live in. The rent should cover the mortgage. Since it's a for profit venture, you can deduct the mortgage interest from that income.

If your company has an NJ office, set yourself up as an employee of that, not the NYC office. Then you'll pay NJ resident taxes, which are less then NYC.

[vision33r]

See a tax pro.