• Sell your home, or at least list it for sale or lease it out to third parties for an extended period.
• Move most, if not all, personal belongings out of your old home and into your new home, especially items near and dear to you.
• Stay out of your old state as much as possible. Keep a log of your whereabouts every day. If New York or another state challenges your position that you moved, they will subpoena cell phone records and those will reveal where your phone was each day (and presumably you too).
• Purchase a home in the state that you want to establish domicile residency in and have your spouse and children move into the home. If you have minor children, withdraw them from their old school(s) and register them in your new place of domicile.
• Surrender your driver’s license and get a new one in your new state of domicile.
• Register to vote in your new state, and actually vote there.
• Re-title and register your vehicles in your new state.
• Engage medical professionals, get involved in the local community, etc. in your new state.
If you change your mind and decide to go back to your old domicile state in two or three years, this shows an intention to return and will be used against you, especially if you move back when or before you are being audited (likely one to two years after filing a nonresident or part-year resident return with the old domicile state).
Conclusion
Taxpayers should begin to evaluate whether they have been in their second home for more than 183 days (for most states, although some states use a longer period) in 2020. If the time spent in their second home is approaching 184 days, they should consult their tax advisor regarding possible “dual resident” status and applicable filing requirements for 2020.
Jennifer Prendamano is a director in Marks Paneth’s Tax Services Group.