Tri-State Tax Alert
From our offices in Boston, Portland, and Portsmouth, Pierce Atwood’s State and Local Tax Group provides litigation, planning, transaction, regulatory, and legislative services to business, associations, and individuals on all Massachusetts, Maine, and New Hampshire tax issues and development incentives.
Taxpayer Found to Be Domiciled in Massachusetts
The Appeals Court ruled that a taxpayer who resided in Massachusetts when he exercised stock options on Amazon stock for a gain of $5.3 million, but who intended to move back to Florida, was domiciled in Massachusetts for tax purposes. The burden of proof was on the Commissioner to show that the taxpayer was domiciled in Massachusetts at the time he sold the stock options, and the court found there was substantial evidence to support a finding of domicile. He purchased a condominium in Boston, rather than taking a short-term rental; he did not reserve any living arrangement in Florida as a fall-back residence; he did not begin to search for a home in Florida for several months; he brought furniture, household goods, a car, and his two pet dogs from Florida to Boston; and he acquired telephone and facsimile services, two mailing addresses, a gymnasium membership, and local newspaper and periodical subscriptions in Massachusetts. Dotson v. Commissioner, Mass. App. Ct., No. 10-P-2181 (Aug. 9, 2012).