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http://www.theatlantic.com/business/archive/2011/02/own-a-se...

The state of New York seems to have found a novel way to raise the revenue needed to close its substantial budget gap: tax people who don't live there.

A New York court ruled last month that all income earned by a New Canaan, CT, couple is subject to New York state taxes because they own a summer home on Long Island they used only a few times a year. They have been hit with an additional tax bill of $1.06 million.

Income that now could be taxed by New York includes capital gains, dividends and securities, attorneys said. In the event of an audit, these homeowners would also be responsible for back taxes, plus interest and penalties, as a result of their New York property.
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If you suddenly owe NY back taxes on everything you earned in your real home state since you bought that NY vacation home ten years ago, you're in a world of hurt.

--fleg
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