April 15, 2021

Moneygeek Features Q&A with Ani Hovanessian on Tax Implications to Consider When Moving

1 min

On April 15, 2021, Ani Hovanessian was featured in a Moneygeek Q&A on tax implications to consider when moving from one state to another. The following is an excerpt:

What factors determine where your true home is?

For tax purposes, your “true home” is viewed as your “domicile.” The exact definition of legal domicile varies from state to state. In general, your domicile is your fixed and permanent home location and the place where you plan to return, even after periods of residing elsewhere (i.e., families and individuals who were living outside NY during COVID-19, even if they have not returned since March 2020, are still treated as domiciled in NY for tax purposes if they plan to return to NY and did not sever their ties with NY). It is critical to establish a legal domicile in the new state if you plan to escape taxes in the state you left. The domicile test in New York looks at five primary factors: home (New York ties vs. non-New York ties), active business involvement, time spent in each location, near and dear (location of personal items), and family connections.

Click here to access the article.