Rich New Yorkers Threaten to Leave. Then They Find Out How Hard That Is.
In the wake of rising taxes and the increasing cost of living in New York City, high-net-worth individuals are exploring options to establish tax residency outside the city. Financial advisors Mark S. Klein and Timothy P. Noonan have emerged as key figures in this niche, providing tailored strategies for affluent clients seeking to minimize their tax burdens. With New York City imposing some of the highest tax rates in the nation, the allure of relocating tax residency has never been stronger. Klein and Noonan emphasize that a well-planned move can lead to significant savings, especially for those with substantial incomes or assets.
The process of claiming tax residency outside New York City involves more than simply changing addresses. Klein and Noonan guide clients through a comprehensive evaluation of their personal and professional lives, ensuring that every aspect aligns with their new residency claims. This includes establishing a primary residence in a more tax-friendly state, such as Florida or Texas, which offer no state income tax. They also advise on maintaining a consistent presence in the new state, such as registering to vote, obtaining a driver’s license, and spending the majority of the year there. Their expertise is crucial in navigating the complexities of tax laws and ensuring compliance with both state and federal regulations.
Klein and Noonan’s services are particularly appealing to wealthy New Yorkers who are disillusioned with the city’s financial landscape. For instance, they have successfully helped clients who own multiple properties and are looking to consolidate their tax liabilities. By leveraging their knowledge of tax codes and residency requirements, they provide clients with a roadmap for a seamless transition. The trend of high-net-worth individuals claiming residency in more tax-friendly states is indicative of a broader shift, as many seek to preserve their wealth amidst escalating living costs. As they continue to advise clients on these matters, Klein and Noonan are at the forefront of a growing movement that underscores the importance of strategic tax planning in today’s financial climate.
Mark S. Klein, left, and Timothy P. Noonan both advise high-net-worth New Yorkers on how to claim tax residency outside New York City.
