Last week, Bloomberg published an article on how the rich avoid paying New York income taxes while still owning a home in the city/state. The key to their tax avoidance strategy is spending less than 184 days in New York within a given calendar year. The 184 day limit is what determines whether an individual is considered a New York residence, and, thus, must pay New York income taxes.
But what counts as “spending a day” in New York? Basically any time you are in the state and not traveling to go somewhere else. So, if you drive from New Jersey to the JFK airport and fly out of state, this does not count as spending a day in NY. But if you stop to grab lunch in NYC on the way, it does.
These details might seem trivial until you realize that many of New York’s richest non-residents want to spend as much time in the city/state as possible without hitting the 184 day limit. And the tactics they follow to comply with the 184 day rule are extreme, to say the least. From Bloomberg:
At New Jersey’s Teterboro and Long Island’s Islip airports, dozens of private jets destined for Florida take off at times such as 11:42 p.m. or 11:54 p.m. Over at JFK, a regular flight from San Juan, Puerto Rico, arrives at a seemingly purposeful time: about 15 minutes after midnight.
Meanwhile, tax attorneys tell stories of clients idling in their luxury SUVs near the New Jersey entrance to the George Washington Bridge shortly before 12 a.m., waiting for the clock to turn before crossing the state line to New York.
In both of these cases, the rich are trying to minimize the days they are in the state. After all, why land at 10 PM