Tax Form Listed Apartment for Commercial Use

Landlord sued to evict rent-stabilized tenant for nonprimary residence. Landlord claimed that no trial was needed because tenant deducted her entire apartment rent as a commercial expense on her tax returns. The court ruled against landlord, finding that a trial was needed to determine the facts. Landlord appealed and lost. In addition to the Manhattan apartment, tenant rented a house in Claverack, New York, and operated a spa or wellness center from the apartment until at least September 2011. Tenant also claimed that she lived in the apartment continuously for 35 years. She said that in recent years she stayed in the apartment five nights a week, sleeping on a daybed in a room used during the business day as a therapy room. Tenant stayed in the other house only on some weekends and holidays, a limited use confirmed by her credit card and bank statements. Any question of whether the apartment was used as tenant's primary residence should be resolved at trial. Information contained in a tax-related document is just one of many factors to be considered in determining primary residence under the Rent Stabilization Law. And a tenant's address, as designated on a tax-related document, isn't a controlling factor in determining primary residence under the Rent Stabilization Law. 

Ansonia Associates Limited Partnership v. Unwin: 2014 NY Slip Op 24094, 2014 WL 1385338 (App. T. 1 Dept.; 4/9/14; Torres, JP, Shulman, Hunter Jr., JJ)