I live in NY but am in Providence at least 12 nights/month for work. I’m looking to purchase a multi family in Providence, RI. My plan was to use one the units myself, and AirBnb it the time I’m not there.
Turns out there’s a new rule that says you can only do AirBnb if you’re an owner occupier. My agent says I could switch my primary occupancy to Providence, and my wife can keeps hers as our home in NY so we keep the tax exemption there. She says plenty of investors do this. My accountant doesn’t think it’s possible.
I’m wondering if anyone has done this, and if so is there anything I need to know?
@David Goldstein I haven't done it. My guess is it would probably work. My wife and I did something similar, not for AirBnB but a similar "two cities" issue, and it was fine for the short term we did it (a couple of years).
But you may also have to change your car registration since I think that may be looked at for "primary residence" owner occupied tax rate purposes, not sure if it's looked at for AirBnB residence purposes too but it's possible since both are administered by Providence and both are tax related.
So there's a question if, in the very unlikely event you had a claim at the location the car is registered, would the car insurance company have a legitimate challenge about whether you were actually occupying the property. That's pretty far-out there and unlikely, even I admit, but it is a (very small) possibility/question.
Of course, if you don't have a car (taking the train up from NYC) then that would be a moot point :)
@Anthony Thompson yeah, I would be driving up most of the time so I suppose I’d have to register my car there (can’t wait to pay that RI car tax again 😒).
The only alternative that I can think of in conjunction with Anthony's statement is if your vehicle is registered to a company. In that circumstance it could be argued that it is a company car, thus having the registration location of your choice.
Unfortunately no, it's not.