Key Personal Income Tax Decision

New York Appeals Court Holds Taxpayer's Vacation Home Did Not Qualify as ‘Permanent Place of Abode’

Corey L. Rosenthal, , JD, and Lance E. Rothenberg, , JD, LLM

In a significant development, a New York appeals court recently held that a taxpayer's vacation home did not, in fact, qualify as a “permanent place of abode” under New York's personal income tax statutory residency rules. On June 30, 2022, the New York Supreme Court, Appellate Division, Third Department, reversed a lower court ruling and decided in favor of the taxpayer, Nelson Obus, concluding he was not a New York resident [In re Obus v. N.Y. Tax App. Trib., Dkt. No. 533310 (N.Y. S.Ct., App. Div., 3d Dept.)]. This article will provide an overview of this key personal income tax decision.