Summertime is almost here and with vacation plans at the forefront of our minds, it seems like the perfect time to recap what I’ve gone over with my faithful readers regarding one important aspect of the statutory residency test, the permanent place of abode (PPA).
Remember, assuming one is domiciled somewhere other than New York (New York State and/or New York City), if you don’t have a PPA, you can be in New York every day and not be a tax resident. The simplest example being a New Jersey domiciliary commuting to work in New York is certainly going to be present for more than 183 days (at least if he or she is an accountant) but they won’t be a tax resident if they don’t have a PPA.
Nothing is ever quite so simple and what we spend a great deal of time focusing our clients towards is not getting caught up in the ugly rumors spread at the country club as to what will and will not constitute a PPA. My summer vacation gift to you, my dear readers, is a short list of what you need to remember about PPAs.
Keep these points in mind and you will be prepared. If you know you have a PPA, you will also know that you need to be aware of your time spent in New York and gather the evidence you need to prove where you were on a contemporaneous basis.
If you have questions about you PPA position, contact me at WBerkowitz@BerdonLLP.com or your Berdon advisor.
Wayne K. Berkowitz, a tax partner and head of the State and Local Tax Group at Berdon LLP, New York Accountants, advises on the unique requirements of governments and municipalities across the nation.