Pearland Real Estate Expert

head_left_image

New York State Could Kill the Real Estate Market in the US

The State of New York has found a way to help raise money for the tax deficit they are facing.  If you own a second home or a vacation home in New York State, you are now subject to state income tax on your income up to 35%. Can you afford that?

A New York court ruled last month that all income earned by a New Canaan, Conn., couple is subject to New York state taxes because they own a summer home on Long Island they used only a few times a year. They have been hit with an additional tax bill of $1.06 million.

Income that now could be taxed by New York includes capital gains, dividends and securities, attorneys said. In the event of an audit, these homeowners would also be responsible for back taxes, plus interest and penalties, as a result of their New York property.

Judge Joseph Pinto, a New York administrative law judge, made the novel ruling in a 2009 case that was affirmed last month on appeal by the New York state tax appeals tribunal. Mr. Pinto seized on what is meant by a permanent residence, which is the benchmark for whether all, or just the in-state portion, of an individuals income is subject to New York state tax.


Judge Pinto ruled that the couple's Long Island vacation home qualifies under the law as a permanent abode because it was suitable for living year-round--whether or not the couple actually stayed in the home wasn't relevant. Under the ruling, if an owner doesn't spend a single a day in a home it could still count toward a permanent residence.

A spokesman for the state Taxation Department issued a written statement that said it was "pleased" with the decision. "However, these cases are fact-intensive and as such each case stands on its own specific fact pattern," it said.

For years, New York law stated that residents of another state who spend more than 183 days a year in New York have to pay taxes on any income they make in this state. But they generally haven't had to pay New York taxes on income they make outside of the state or on their spouses' income if they work elsewhere.

Under the recent ruling, this might change for many out-of-state residents who own vacation homes or apartments here. In effect, it reinterprets what counts as a permanent residence.


In defining a "permanent place of abode," New York tax code specifically excludes "a mere camp or cottage, which is suitable and used only for vacations." New York tax experts say the new ruling is the first they recall that counts summer homes as permanent residences.

Is your state next? This law MUST be stopped in it’s tracks. It will KILL the real estate market in New Your and it will KILL the real estate market in your area if it is allowed to stand. Call your state rep and tell them “Not in our Sate”...

Just think, you live in Texas and you have a vacation home in the Hampton's. You are now subject to a state income tax from New York of up to 35% of ALL of your earnings.... Just because you own a vacation home in New York State...

To end on a positive note, real estate in New York just got cheaper.... Oh, that’s not a good thing is it????

*************************************************************

Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/. And for all of your Pearland, TX and Northern Brazoria and Galveston County real estate needs, please visit my site at: http://www.danfrankrealty.com. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.


Remember, Danny Frank is a local Pearland, TX Real Estate expert! You can see my entire blog
at:  http://www.pearlandrealtyblog.com

 

 

 
Chat: Google Talk: DanFrankTX Skype: DanFrankTX

  

 

Comment balloon 3 commentsDanny Frank • February 22 2011 02:47PM
New York State Could Kill the Real Estate Market in the US
share
The State of New York has found a way to help raise money for the tax deficit they are facing. If you own a second home or a vacation home in New York State, you are now subject to state income tax on your income up to 35%. Can you afford that? A… more
FEBRUARY-2011 Newsletter by Danny Frank
share
Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home,… more
Texas Realtors Celebrate Annual Achievements in the Real Estate…
share
PR Newswire AUSTIN, Texas, Feb. 21, 2011 Winter Meeting honors those who made an impact in 2010 AUSTIN, Texas, Feb. 21, 2011 /PRNewswire-USNewswire/ -- Celebrating a year of accomplishments, the Texas Association of Realtors recognized outstanding… more
Congressman Pete Olson Presents Congressional Congratulations to NACD…
share
ARLINGTON, Va., Feb. 14, 2011 /PRNewswire-USNewswire/ -- On Monday, February 7, SolvChem, Inc. and its sister business Packaging Service Co., Inc., headquartered in Pearland, Texas, were honored with a visit from U. S. Congressman Pete Olson (R-TX)… more
TREC 1-4 Family Contract NEW
share
TREC Texas Real Estate Commission, has put out a new contract for the 1-4 family contract. My friend Laurie Hines with Alamo Title in Alvin TX was kind enough to send me a power point on this and I made it into a move so I could show all of you… more
America's Worst Speed Traps
share
1. Houston, Texas Speed traps: 373 And the winning city is from … Houston Texas! Seriously, the speed traps in Texas are so bad, Dornsife said, "any place in Texas could be No. 1. "Drivers note on www. Speedtrap. org that there… more
Jobs and Home Ownership. You can't have one without the other.
share
Good jobs enable people to achieve the American dream of home ownership. And every time a house is built, bought, or sold, jobs are created—lots of them—right here at home. Home sales in this country generate more than 2. 5 million… more
8 Tips for Adding Curb Appeal and Value to Your Home
share
By: Pat Curry Published: February 18, 2011 Here are eight ways to help your home put its best face forward. The way your house looks from the street--attractively landscaped and well-maintained--can add thousands to its value and cut… more
Buyers switching loan companies
share
Today I got some very interesting news from the loan officer from the buyers of one of my listings. She informed me we would have to extend the contract date at least one week… Understand this house has been under contract since Nov 16th with a… more
This is All you need to know about Government Bureaucracy
share
Pythagorean theorem:… 24 words Lord's prayer:… 66 words Archimedes' Principle:… more
Mortgage Interest Deduction Vital to Housing Market
share
By: Dona DeZube Published: October 29, 2010 The home mortgage interest deduction saves the average home owner thousands of dollars at tax time, supports home values at the community level, and helps American home buyers get into their first… more
The 3. 8% tax you’re not going to pay
share
A rumor has been circulating via e-mail and on the Internet about a 3. 8% tax in the healthcare-reform law that will be imposed on unearned income … including proceeds from the sale of a home. The e-mail says you’ll pay $15, 200 in taxes on the… more
2011 TAR Winter Meetings
share
Tomorrow, Friday, Feb 11, I will be heading to Austin for the 2011 TAR winter meetings. I have a very full schedule. I am looking forward to learning new things and meeting new people. If you have never been to the TAR… more
11714 Bollinger Park Ct, Houston TX For Sale
share
The Sullivan is a beautiful one story home with an elegant dining room and the kitchen is open to the spacious living room. High arches around the home with rounded corners to add a touch of contemporary style. Enjoy your evenings outside on… more
This is Why You MUST join me at Keller Willliams Realty
share
Will Consumer Demands Create A Tipping Point for the Real Estate Transaction? By Jeremy Conaway February 1, 2011 – 11:33 AM It seems like just yesterday that Malcolm Gladwell in his book, Tipping Point: How Little Things Can Make A Big… more
Keep Pearland Beautiful announced new recycling options for the…
share
Keep Pearland Beautiful announced new recycling options for the citizens of Pearland. Residents living in single family homes and residing inside the city limits of Pearland, are able to recycle more products curbside. Waste Management added these… more
Do QR Codes work for you? And Why?
share
I am taking a poll about QR codes and how you use them in your business. I have had some great SEO jumps with QR codes and just want to find out how your are using them and if they are working for you. Please leave comments here and… more
Sales volume down 5%, price up 1% for Texas homes in 2010
share
Feb. 1, 2011 According to the Texas Quarterly Housing Report released today by the Texas Association of REALTORS®, Texans bought and sold fewer homes in 2010 than in 2009, but the median price of those homes remained stable from year to year… more
One step closer to eminent domain reform!
share
Your continued hard work and dedication is now paying dividends! Eminent domain reform is on the way! SB 18 by Sen. Estes has been set for a hearing this Thursday at 9 am in the Senate State Affairs Committee. We are now one step closer to… more
Temporary Fishing Closure in Place on Texas Coast during Freeze
share
News Release Temporary Fishing Closure in Place on Texas Coast during Freeze Feb. 2, 2011 Media Contact: Steve… more