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Subject Author Date
Dual State Resident? R. Pile 11-27-2007
Posted by R. Pile on November 27, 2007, 5:04 pm
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My sister-in-law and her husband are now in divorce proceedings.
Until late 2006 they lived together in a rented house in upstate NY.
He retired and filed for divorce and moved to another city in NY. She
does not work and moved in with her sister in VA, where she has now
lived for about a year.

Under terms of their settlement, he has been sending her money every
month; she will soon start to receive a portion of his NY State
pension. She solely owns a rental condominium in upstate NY that will
either break even or show a small loss in 2007. Otherwise, she has no
other income.

In 2006 she and her soon-to-be-former husband filed jointly; for 2007,
she will likely file separate at least to report the rental income and
expenses and, perhaps, the pension income.

She continues to claim she is a "legal resident" of NY, although she
has lived in VA for well over 183 days in 2007. Other than occasional
short visits to her son, other family and friends, she has not been in
NY all year. She has no obvious reason to return to NY (the son lives
near the rental property and is available, if needed), but also no
obvious reason holding her in VA either (other than low-cost
accommodations with her sister). NY does not tax NY State pension
income, hence the benefit of a claim of NY residency.

What State is she a resident of and what State tax return will she
need to file for 2007 - NY, VA? Both due to her living in VA with NY-
based rental income?

Thanks for any assistance.


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