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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29938
Experience:  Taxes, Immigration, Labor Relations
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I have an LLC in NY, based in NYC. I used to live there in

Customer Question

I have an LLC in NY, based in NYC.
I used to live there in Manhattan and left in August 2014 to travel.
I have been travelling the globe and living in hotels since then, visiting NYC only a few times and staying with friends, no more than one week at a time.
Am I able to avoid high NY taxed because I'm virtually never there. I do not have an apartment, my belongings are minimal and in a cupboard at a friends apartment.
I have a PO box for my business, and still have an NY drivers licence, as I can't get one in another state as I have no fixed address.
Any advice?
Thanks
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Your state tax liability is based on determination whether you are a resident of NY or not.
So far - it is clear you WAS a resident of NY - but as you did not establish a residency elsewhere - we may not say that your residency was changed.

So - from NY state tax authorities - you are still considered a resident of NY.

Customer: replied 1 year ago.

What do I need to establish a residency elsewhere...

AND

When do I have to do this to avoid 2016 tax in NY??

What if I get an address in another state by end of FEB for example?

Expert:  Lev replied 1 year ago.

NY tax liability is based on either - source of income OR residency.

Thus - if you are a resident of NY - you are subject to NY state income on all your worldwide income.

If you move out of NY and establish a residency elsewhere - you would be subject to NY taxes ONLY on income from NY sources.

Thus, to avoid NY income tax completely - you would need to move out of NY and establish a residency in any other state AND would not have any income from NY sources.

Generally, if your domicile is not New York State you are considered a New York State nonresident. However, you are a New York State resident for income tax purposes if your domicile is not New York State, but you maintain a permanent place of abode in New York State for more than 11 months of the year and spend 184 days or more (any part of a day is a day for this purpose) in New York State during the tax year.

However, even if your domicile is New York State, you are not a resident if you meet all three conditions in either Group A or Group B as follows:

Group A

1. You did not maintain any permanent place of abode in New York State during the tax year; and

2. You maintained a permanent place of abode outside New York State during the entire tax year; and

3. You spent 30 days or less (a part of a day is a day for this purpose) in New York State during the tax year.

Group B

1. You were in a foreign country for at least 450 days during any period of 548 consecutive days; and

2. You, your spouse (unless legally separated), and minor children spent 90 days or less in New York State during this 548-day period; and

3. During the nonresident portion of the tax year in which the 548-day period begins, and during the nonresident portion of the tax year in which the 548-day period ends, you were present in New York State for no more than the number of days that bears the same ratio to 90 as the number of days in such portion of the tax year bears to 548.

So far - if based on these rules - you think that you were a nonresident ion NY - your income is not taxes on the state level.

Otherwise - you would be considered a resident of NY - and will be taxed on all your income.

Expert:  Lev replied 1 year ago.

In additional - ever you will change your residency - having an NY LLC makes income generated by that LLC from NY sources - and as such taxable for you as a nonresident.

If income realized by that LLC is not specifically related to that state (for instance online sales or personal services) - you would need to move that LLC to a different state.

Or may be dissolve it and create a new LLC in another state.

.
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