How Hard is it to Give Up New York Tax Residency?

The Challenge of Exiting New York

Leaving New York for tax purposes is not as simple as buying a condo in Florida and getting a new driver's license. The burden of proof is high: a taxpayer claiming a change of domicile must prove it by "clear and convincing evidence." A recent decision by the New York Tax Appeals Tribunal, Matter of Hoff (DTA No. 850209), serves as a stark reminder of how rigorous this standard is. Even with a Florida home, Florida voting registration, and Florida licenses, the taxpayers lost their case and remained New York residents for tax purposes.

New York Residency Rules: A Quick Recap

New York State (and City) taxes you as a resident if you meet either of these two tests:

• The Domicile Test: Your domicile is your permanent and primary home—the place you intend to return to. You can only have one domicile. To change it, you must demonstrate by clear and convincing evidence that you have abandoned your old domicile and established a new one.
• The Statutory Residency Test: Even if your domicile is elsewhere (like Florida), you are taxed as a NY resident if you maintain a "permanent place of abode" in New York for substantially all of the year AND spend more than 183 days in New York.

The Hoff Case: A Cautionary Tale

In Matter of Hoff, the taxpayers, John Hoff and Kathleen Ocorr-Hoff, attempted to change their domicile from New York to Florida in 2018. They owned a home in Canandaigua, NY, and purchased a condo in Naples, FL. They took many of the formal steps advisors often recommend:

• They filed a Florida Declaration of Domicile.
• They registered to vote in Florida.
• They obtained Florida driver's licenses.
• They joined a Florida country club.

Despite these formal declarations, the Tribunal ruled against them. Why? Because their "general habit of life" contradicted their claim of abandonment of New York.

1. The "Teddy Bear" Test (Near and Dear Items)

Auditors often look at where you keep your most prized possessions—items "near and dear" to your heart. The Hoffs moved their ski equipment and Waterford crystal to Florida. However, the crystal was moved in 2014, years before the alleged move date, and the ski equipment's move was unexplained. The court found this unpersuasive compared to the fact that their New York home remained a fully furnished, "substantial property" suitable for year-round use.

2. The Day Count Problem

Perhaps the most damaging fact was the time spent in each location. In 2018, they spent 186 days in New York versus 131 in Florida. In 2019, they spent 164 days in New York versus 153.5 in Florida. Spending more time in your "old" domicile than your "new" one is often fatal to a domicile change case. It suggests your lifestyle hasn't fundamentally shifted.

3. Sticky Business Ties

Mr. Hoff was the owner of a New York business. While he had an "exit strategy" (Plan B), the court found he was still actively involved during the audit years. He received a significant salary, maintained business accounts, and traveled for the company. The "diminished role" he claimed wasn't enough to sever his New York business ties for domicile purposes.

4. Social Ties

While they joined a club in Florida, they maintained two country club memberships in New York. The court noted that keeping full memberships in New York clubs undermined their claim that their social life had centered on Florida.

The Lesson: Formalities vs. Reality

The Tribunal's decision reinforces a critical principle: "Formal declarations" (voting, licenses) are less important than "informal acts" (time spent, home maintenance, business activity). You cannot simply declare yourself a Floridian; you must live like one and, crucially, stop living like a New Yorker.

As the decision stated: "Notably, even the sworn documents filed with the State of Florida... are less significant than informal acts demonstrating an individual’s general habit of life."

Protect Yourself with Documentation

The Hoffs failed in part because their day-to-day actions didn't match their declared intent, including the high day counts in New York during the years at issue. If they had increased their Florida day count to be greater than the New York day count, this could have helped although more likely would have been needed in this case.

Don't leave your residency status to chance or memory. Use the Domicile365 App to track your days automatically via GPS, ensuring you have the "clear and convincing" records needed to defend your move and log your day counts.