Taxation System in the New York - Assignment Example

Since his daughter furnished the apartment using his property, he would have to pay all the property taxes for the furniture. In 2009, the taxpayer also visited his regular doctor and traveled by taxi to and from JFK airport. The hotel expenses would also add to the amount of money he would have had to pay as taxation.In 2010, the taxpayer was in New York for an additional 47 days but returned home in September that year. For the time up to September, his salary would be subject to taxation in New York as a person working abroad.

When he came back home, he would go back to being taxed as a local resident since he was no longer working abroad. He would also continue being on his daughter’s apartment lease as the guarantor and therefore pay all the subsequent taxes related to the lease.The taxpayer’s taxable income would be $150,000 from the sale of stock of a California corporation which only held New York real property + $4,000 in NY State lottery winnings + $50,000 distribution from his pension plan + $1000 interest income from his savings account from ING + $100,000 in gains from the sale of a painting located in Connecticut but sold while temporarily at a museum located in New York.

The cost of the painting was $20,000. To make a total of $305,000The amount of the taxpayer’s income that would be subject to New York taxation would be around 100/365 x 100,000. The time he spent working in the company’s out-of-state field offices would not be liable to taxation in New York.The allocation formula would be simply dividing the number of days spent in New York with a total number of days in a year and multiply with his total wages from the company for a year. There are around 155 days that the taxpayer cannot account for in terms of where he was working.

Since there is no way of determining this, there would be no taxes calculated for these days.