New York snowbirds fail in their attempt to move to Florida and avoid state taxes

Snowbirds Face Tax Dilemma in New York

An upstate New York couple now living in Florida has discovered that proving their new home is their primary residence is quite complicated.

John Hoff and his wife are facing a $60,000 tax bill from New York state after the Tax Commission determined they couldn’t adequately prove their Florida residence was their main home. This recent ruling has implications for others who spend part of the year in both New York and Florida.

After retiring to the warmer climate of Naples, Florida, the couple invested in a luxurious $1 million condo. Yet, their connections to upstate New York remained too strong. The ruling is expected to be finalized on October 9th.

The New York State Court of Tax Appeals crafted a 24-page decision that highlighted Hoff and his wife’s claims of having a car registered in Florida and a bank account there as proof of their move.

According to the ruling, Hoff possesses hunting and fishing licenses, and his wife, Okohoff, claimed to have started a business at their Florida address. However, the court found these claims unconvincing, stating they lacked substantiation and were contrary to the overall record.

Hoff runs a technology import/export business in New York, while Okohoff is a graphic designer. They married in 2008 and eventually bought a home for nearly $907,000 in Poplar Beach in 2011.

Later, the couple developed a fondness for Naples and planned their relocation, with hopes for Hoff to hand the business over to their son. They purchased a condo on Gulf Shore Boulevard in 2014 for $935,000, putting another $200,000 into renovations, intending it to be a retirement home and claiming it as their primary residence on their 2018 and 2019 tax returns.

As part of their transition, they moved some belongings into their new condo, registered to vote, and opened a bank account in Florida while maintaining two country club memberships in New York. They had hopes to split their time between the states, spending winters in Florida and summers Upstate.

In terms of days spent in each place, Hoff indicated he was in New York for 186 days in 2018 and 164 days in 2019, but tax officials maintained this wasn’t enough to qualify them as legal Florida residents.

Hoff’s business plans hit a snag due to new tariffs affecting his company, and although he lightened his workload, he continued to take an active role. They also received income from their New York-based businesses, including Okohoff’s design firm.

In 2021, state tax authorities imposed around $59,648 in taxes and penalties from 2018 and 2019.

Hoff and Okohoff contested the bill, leading the matter to an administrative judge for resolution. That judge determined the couple failed to demonstrate they changed their primary residence for tax purposes. The court later reaffirmed this ruling in October.