NY to NJ with house purchase

Posted by c on June 16, 2009, 5:16 pm

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hi all,

i'll be parting with my beloved manhattan apartment for the tempting
space and privacy of a jersey house

i understand that by closing before 12/1 i can amend my 08 for a fast
$8k

i imagine that by no longer being a resident of NYC i'll save a good
chunk of income tax

i'm moving only 20-something miles, so i don't believe i can get that
'relocation' credit...

i'm clueless about commuting credits, except that there's a pre-tax
withdrawal allowed for certain expenses (trains, maybe parking?)

my direct question (not that i don't appreciate comments regarding the
above): is there a handy how-to guide for first-time home owners / ex-
NYC'ers / etc? i know i'm the 50,000,000th person to do this, but
trying to wade through lots of googled results hasn't gotten me the
'checklist' i was hoping for ..

all help appreciated,

-c

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Posted by Phillip Marti on June 17, 2009, 6:16 am

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"c" wrote:

> i'm moving only 20-something miles, so i don't believe i can get that

> 'relocation' credit...

That deduction is available only if you change physical locations of
employment. Doesn't sound like you are.

> i'm clueless about commuting credits, except that there's a pre-tax

> withdrawal allowed for certain expenses (trains, maybe parking?)

Employers can provide tax-free commuting assistance, but there's nothing you
can do on your own.

> my direct question (not that i don't appreciate comments regarding the

> above): is there a handy how-to guide for first-time home owners / ex-

> NYC'ers / etc?

For tax information about owning a home, IRS Publication 530. For
information on the loan and closing process, HUD has lots of booklets
available, many of which are required to be given to you by the lender. I'd
also suggest you ask your real estate agent.

--------------
Phil Marti, VITA Volunteer
Clarksburg, MD

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Katie on June 25, 2009, 7:07 pm

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> hi all,

> i'll be parting with my beloved manhattan apartment for the tempting

> space and privacy of a jersey house

> i understand that by closing before 12/1 i can amend my 08 for a fast

> $8k

> i imagine that by no longer being a resident of NYC i'll save a good

> chunk of income tax

> i'm moving only 20-something miles, so i don't believe i can get that

> 'relocation' credit...

> i'm clueless about commuting credits, except that there's a pre-tax

> withdrawal allowed for certain expenses (trains, maybe parking?)

> my direct question (not that i don't appreciate comments regarding the

> above): is there a handy how-to guide for first-time home owners / ex-

> NYC'ers / etc? i know i'm the 50,000,000th person to do this, but

> trying to wade through lots of googled results hasn't gotten me the

> 'checklist' i was hoping for ..

> all help appreciated,

Will you still be working in NY? If so, you will still be subject to
NY state income tax on your wages, even if you earn some of your
salary by telecommuting from your NJ home. However, you will be able
to exclude from your NY income any part of your salary that is earned
by performing services outside NY (on business trips) that cannot, by
their nature, be performed at your NY office.

As a nonresident of NYC, you are correct that you will not be subject
to the NYC individual income tax even if you work in the city.

Assuming you're moving mid-year, you'll file part-year resident
returns with both NJ and NY in the year of change. Your NJ income
will include all of your income earned after the change of residence.
Your NY income will include all of your income earned during the part
of the year when you were a resident, plus your NY source income
earned after you became a nonresident. NJ will give you credit for
the tax you pay to NY on your NY source income earned after you became
a NJ resident, limited to the NJ tax on that income.

In following years, when you are a full year resident of NJ, you will
file a resident return with NJ reporting all of your income from all
sources, and a nonresident return with NY reporting your NY earnings
plus any other NY source income. Again, NJ will give you credit for
the NY tax you pay on those earnings.

You should be aware that income from intangibles, such as interest and
dividend income, generally has its source at the residence of the
owner. Interest on a savings account or CD in a NY bank, for example,
is not NY source income after you become a nonresident.

You won't be eligible for a moving expense deduction because you are
not moving due to a job change, but for personal reasons.

Katie in San Diego

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
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NY to NJ with house purchase - tips?