Yikes: New York Can Tax All Income of Owners of Unused Vacation HomesFebruary 11, 2011 0 Comments
Remind me never to buy vacation property in New York. A New York court has ruled that a Connecticut couple must pay an extra $1.06 million in taxes because they own a summer home on Long Island only used a few days out of the year. In effect, the city is redefining what a "permanent residence" is retroactively against the expectations of vacation home purchasers.
"Mr. 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 day in a home it could still count toward a permanent residence (emphasis added)."
I'm sure this ruling will do wonders for New York's real estate market.