The “Near and Dear” Test: Where’s Your Dog, Your Art, Your Heirlooms?

When high-income taxpayers move from a high-tax state to a low-tax state, they usually focus on big items:

• New home
• Driver’s license
• Voter registration
• 183-day rule

But in a state tax residency audit, one of the most powerful tests is much more personal:

Where are your “near and dear” items?

The “near and dear” test looks at where you keep the things that matter most to you—your dog, your art, your jewelry, your family heirlooms. These personal items can be the deciding factor in a domicile dispute.

What Are “Near and Dear” Items?

“Near and dear” items are personal belongings that are:

• Sentimental
• Hard to replace
• Important to your daily life or identity

Examples include:

• Pets and their vet records
• Family photos and albums
• Original artwork and favorite paintings
• Jewelry with family history
• Special collections (books, wine, instruments)
• Heirloom furniture (dining tables, chests, clocks)
• Personal documents you keep close

In a residency audit, these items help answer one basic question:

“Where is this person’s real home?”

Why States Use the Near-and-Dear Test in Residency Audits

For state income tax, the key issue is domicile—your one true home. When you say you moved from New York, New Jersey, or California to Florida, Texas, or Nevada, the old state will often ask:

• Did you really move your life, or just your mailing address?

The near-and-dear test is a way to check your intent. States assume that most people will not leave their most important items behind unless they truly intend to move.

If your near-and-dear items stay in the old state, auditors may argue:

• Your low-tax move is not real
• Your old house is still your true home
• You remain a resident for state tax purposes

If your near-and-dear items move with you, they help prove that your domicile has changed.

Pets: The Clearest Near-and-Dear Evidence

Pets are one of the strongest near-and-dear clues in a state tax residency audit. Many people think of pets as family members. Auditors know this.

They will look at:

• Where your pet lives most of the time
• Vet records and their location
• Pet license registration addresses
• Microchip registration
• Boarding and grooming receipts

If you say you moved to Florida but your dog, cat, or other pet lives full-time in New York, that fact can hurt your case. On the other hand, if your pet moved with you, that supports your story.

Art, Jewelry, and Family Heirlooms

Auditors also pay attention to where you keep:

• Fine art and sculptures
• Antique or heirloom furniture
• Family jewelry and watches
• Special collections (wines, rare books, musical instruments)

Suppose you “move” to a small condo in a low-tax state but keep:

• A large home in your old state
• All your important art and heirlooms there
• Most of your personal belongings there

In that case, the auditor may decide that the big house, not the condo, is your true home.

How Auditors Learn Where Your Near-and-Dear Items Are

You might wonder how tax auditors find out where you keep your personal items. In a residency audit, they may:

• Ask detailed questions in interviews
• Review moving company records
• Request storage and shipping invoices
• Look at insurance schedules for art and jewelry
• Study listing photos if you sell or rent a home
• Request estate planning documents that list valuable items

Their goal is to build a clear picture: Which state looks more like your real home?

Using the Near-and-Dear Test in Your Favor

If you are serious about changing state tax residency, plan your near-and-dear moves with care:

1. Make a list of near-and-dear items. Identify which possessions matter most to you and your family.
2. Move them to the new state. Do not leave your most important items sitting in your old state home or long-term storage.
3. Update insurance and records. Change addresses on insurance, appraisals, pet records, and other documents.
4. Align with other life changes. Match your near-and-dear move with changes in home, family location, work base, and day counts.
5. Be prepared to explain. During a residency audit, you may be asked, “What did you move, and what did you leave?” Think through your answers in advance.

The Emotional Side of Domicile Planning

The near-and-dear test makes one thing clear: state tax residency planning is emotional.

Moving your pet’s vet, your favorite art, and your family heirlooms is not easy. It often means:

• Leaving friends and community
• Changing schools for children
• Giving up local clubs and routines

States rely on this. They know many people will not go that far just for a tax break. That is why near-and-dear items are so important in a domicile dispute.

If you are not willing to move your near-and-dear items, you may not be ready to move your tax residency.

Considering a Move? Get Advice Before You Pack

If you are thinking about leaving a high-tax state for a low-tax state, do not overlook the near-and-dear test. In many residency audits, where your dog, your art, and your heirlooms live ends up being the tie-breaker.

Talk with a state tax residency attorney about how to build a complete plan—covering homes, day counts, documents, and near-and-dear items—before you move. Planning now can save you from a painful residency audit later.