While the IRS focus is on whether you "used" the home as a primary residence for 24 months, NYS is notorious for its aggressive "Statutory Residency" audits, which look at your global ties and day co...
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While the IRS focus is on whether you "used" the home as a primary residence for 24 months, NYS is notorious for its aggressive "Statutory Residency" audits, which look at your global ties and day counts.
Federal: To exclude up to $250,000 (single) or $500,000 (married) in capital gains, you must meet the Ownership and Use tests. Since you already own the home, the "Use" test is where documentation matters. The IRS looks for "Primary Residence" indicators:
Voter Registration: Moving your registration to Florida is a major legal marker.
Mailing Address: Use the Florida address for your IRS filings, VA correspondence, and Social Security.
The "Non-Qualified Use" Rule: Be aware that if you owned the Florida home as a "second home" or rental before moving into it as a primary residence, the IRS may prorate your exclusion. You only get the full exclusion for the period it was your primary home.
If you moved there with intent to stay and had a reason you had to move - like health, there are some exceptions that allow a proration.
NY:As a 100% service-connected veteran, you may also have specific property tax exemptions in Florida that can serve as "intent" evidence for your residency.
New York State will try to tax your Florida gain if they consider you a Statutory Resident. You are a resident of NY if you:
Maintain a "permanent place of abode" (your NY home).
Spend more than 183 days in NY during the tax year.
Cell Phone Pings/Records: NY auditors frequently request cell phone records to track which towers your phone hit on specific days to verify your location.
Credit Card Statements: Showing daily spending (groceries, gas, coffee) in Florida vs. New York.
The "Teddy Bear" Test: NY auditors look at where your "near and dear" items are (family photos, heirlooms, pets, or high-value collections). If these are still in NY, they may argue you never truly left.
The FL homestead veterans exemption is inconsistent with being a NY resident
NY STAR credit or residency based exemptions should not qualify with FL residency