Having a Vacation Home in New York: Impact on Residency

The New York State Supreme Court, Appellate Division, reversed a recent Tax Appeals Tribunal decision that treated ownership of a vacation home in New York as a permanent place of abode for statutory residency purposes. In the Matter of Nelson Obus, the court determined that a New Jersey-domiciled resident, who spent more than 183 days in New York City and maintained a vacation home in upstate New York for temporary use, was not a statutory resident for New York income tax purposes.

Previously, in a 2021 decision, the Tax Appeals Tribunal focused on the fact that the taxpayer had unfettered access to a vacation home that could have been used as a permanent place of abode year-round.  Since the taxpayer spent more than 183 days in New York (in order to work in New York City), Nelson Obus and his spouse were determined to be New York statutory residents. 

The New York State Supreme Court rejected the notion that maintaining a vacation home that could be a permanent place of abode is enough to satisfy the requirement.  Rather, the court focused on the intent of the statute, which is to tax individuals who are essentially residents of the state. Pursuant to the facts in this matter, since the taxpayers did not utilize their vacation home as a residence, the New York State Supreme Court reversed the decision of the Tax Appeals Tribunal.

For additional information on the tax residency implications of owning a vacation home out-of-state, please contact your Marcum State and Local Tax professional, or Barry Halpern or  Lisa Haime.