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Dual residences

OGputtnfool

OGputtnfool

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For those of you who split the year between two locations (FL/WA, FL/NY, etc.), how does it work for your state taxes? You file in the state you live most of the year?
 
I know New York is monitoring social media and other sources of residents that have homes in Florida. If New York can prove someone spent the majority of time in NY but filed as a FL resident, they will sue (and have many times). I would imagine that the exodus of residents from high-tax states will prompt those states to do the same.

At least until those that have left the high-tax states vote as they have in the past and turn the low/no-tax states into high-tax states...
 
pattyboy21 said:
I know New York is monitoring social media and other sources of residents that have homes in Florida. If New York can prove someone spent the majority of time in NY but filed as a FL resident, they will sue (and have many times). I would imagine that the exodus of residents from high-tax states will prompt those states to do the same.

At least until those that have left the high-tax states vote as they have in the past and turn the low/no-tax states into high-tax states...
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That's what I figured. I'm thinking ahead to retirement. Not sure if we wanna have dual residences or just have one. We'll likely spend most of our time on the road (contemplating RV, 5th wheel, or just a van/SUV and staying in hotels now) for the first few years anyway. Will most definitely have at least one of our residences (assuming we do the dual thing) in a no income tax state to minimize the extortion.

I wonder, if you had two homes and spent 30 days in each and the rest of the year on the road... which state would try to extort money from you for that year?
 
OGputtnfool said:
That's what I figured. I'm thinking ahead to retirement. Not sure if we wanna have dual residences or just have one. We'll likely spend most of our time on the road (contemplating RV, 5th wheel, or just a van/SUV and staying in hotels now) for the first few years anyway. Will most definitely have at least one of our residences (assuming we do the dual thing) in a no income tax state to minimize the extortion.

I wonder, if you had two homes and spent 30 days in each and the rest of the year on the road... which state would try to extort money from you for that year?
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The rules are changing and high-tax states are aggressively pursuing people with residences in other states. For a road traveler, I think you'd want to somehow demonstrate that the "home" you would return to, or intend to return to, is in the no-tax state. Conversely, if the high-tax state can prove you had a "home" that you would return to, or intend to return to, they could conceivably come after you for taxes. It's definitely a question for a tax expert (which I am certainly not! lol): https://www.bakertilly.com/insights/dual-state-residency-can-result-in-dual-taxation
 
pattyboy21 said:
The rules are changing and high-tax states are aggressively pursuing people with residences in other states. For a road traveler, I think you'd want to somehow demonstrate that the "home" you would return to, or intend to return to, is in the no-tax state. Conversely, if the high-tax state can prove you had a "home" that you would return to, or intend to return to, they could conceivably come after you for taxes. It's definitely a question for a tax expert (which I am certainly not! lol): https://www.bakertilly.com/insights/dual-state-residency-can-result-in-dual-taxation
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Yeah, we've got plenty of time to work it out. This is just a glaring reason why we need to completely revamp our whole tax system. Get rid of income tax altogether along with the IRS in its entirety. Bring on the Fairtax and make things so much better.
 
OGputtnfool said:
Yeah, we've got plenty of time to work it out. This is just a glaring reason why we need to completely revamp our whole tax system. Get rid of income tax altogether along with the IRS in its entirety. Bring on the Fairtax and make things so much better.
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Amen! I'm hoping to find a better remote working situation than I have currently. That will allow me to live outside of the U.S. for 330 days and avoid income tax (not SS tax though).
 
So many things wrong with all that in that link. Makes me think I should simply buy a shack in the middle of nowhere Wyoming (no state extortion) and live off the grid there and buy a place in either TX or FL (no state extortion in either of those) for the winter months.
 
If you live off the grid, the state and/or municipalities will probably come after you for not using their services. It has happened.
 
Greg Kulbick said:
If you live off the grid, the state and/or municipalities will probably come after you for not using their services. It has happened.
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I don't doubt it. Tyranny is running rampant in our country nowadays. I would say I'd like to see how they'd justify extorting money from someone that lives 50 miles from the nearest running water, electricity, etc., but I'm sure it'd infuriate me so I won't say it.
 
Think six months and a day is the key. We try to be in Fl at least that much and are Fl residents. NC has tried to come back and make us pay state income taxes but we were able to prove our case. Some states can be real A-holes so it's best to be on the safe side. Generally come down to Fl in September and back to NC in April, that gives us three months at each end of the year. Think most of the states with no income tax don't much care how much you're there. We own property and rental property in both states, we do have to pay NC income tax on the rental income which isn't much but we do try to do it right.
 
GG194 said:
Think six months and a day is the key. We try to be in Fl at least that much and are Fl residents. NC has tried to come back and make us pay state income taxes but we were able to prove our case. Some states can be real A-holes so it's best to be on the safe side. Generally come down to Fl in September and back to NC in April, that gives us three months at each end of the year. Think most of the states with no income tax don't much care how much you're there. We own property and rental property in both states, we do have to pay NC income tax on the rental income which isn't much but we do try to do it right.
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I'm just afraid any of the extortionist states would want to try to extort money from us if we were to take a month long trip from our FL (for example) residence and, therefore, only spend 5 months in FL vs 6 months in the other state.

Maybe, the only good answer is to have two homes both located in states that don't practice extortion or to just have one home and live on the road the rest of the time. The only problem with that is there really isn't a good, centrally located, non-extortionist choice. I dunno...
 
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I live in NV, so there is no state income tax. If I moved to another no income tax state, no one would come after me for anything. So there's your plan. Half the year in Texas (or somewhere warm), half the year in WA or WY.
 
I did CT/FL for 8 years. First you must declare FL your prime residence and initiate all of the requirements to do that. There are guides that show the requirements. The thing you must track in the first year especially is the days in your new residence. You must exceed 1/2 of the year. And days outside of those two places will count as being not in FL...States like CT, NY are very aware of those who are doing this to avoid the high taxes in their previous state and are going after many to prove they are abiding by the law....My move of primary to FL vs CT was a very big savings. FL also has homesteading for residents. As in your house value for real estate tax is reduced by 25.000 per person or 50,000 if filing joint. The place is a win/win. They abuse visitors/tourists and 2nd home owners who don't live there.
 
GolfTravelDude said:
I did CT/FL for 8 years. First you must declare FL your prime residence and initiate all of the requirements to do that. There are guides that show the requirements. The thing you must track in the first year especially is the days in your new residence. You must exceed 1/2 of the year. And days outside of those two places will count as being not in FL...States like CT, NY are very aware of those who are doing this to avoid the high taxes in their previous state and are going after many to prove they are abiding by the law....My move of primary to FL vs CT was a very big savings. FL also has homesteading for residents. As in your house value for real estate tax is reduced by 25.000 per person or 50,000 if filing joint. The place is a win/win. They abuse visitors/tourists and 2nd home owners who don't live there.
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That's all good info. Thank you.

The bolded part isn't a win, per se, they're just not extorting you for as much as they could.
 
Real Estate Tax rates in FL straight up are lower than many states. They were lower than CT. Then my house value was reduced 50,000 on top of that. My tax rate for my house worked out to be 1% of value. In CT I was paying 2% and also over 5% income tax...My house in FL worked out to be free for the first 3 years on just the savings.....
 
GolfTravelDude said:
Real Estate Tax rates in FL straight up are lower than many states. They were lower than CT. Then my house value was reduced 50,000 on top of that. My tax rate for my house worked out to be 1% of value. In CT I was paying 2% and also over 5% income tax...My house in FL worked out to be free for the first 3 years on just the savings.....
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It is lower than CT, but FL is not all that cheap. Currently ranks 26th or 27th (going off memory) in 2019 for property taxes by state. CT being one of the highest in the nation (somewhere around 47th or 48th I believe). Obviously there are some really cheap counties out there and some more expensive so YMMV.
 
GolfTravelDude said:
FL really takes care of their residents Here's Kiplinger analysis...FL Most Tax Friendly...
https://www.kiplinger.com/slideshow...low-taxes-50-states-ranked-for-tax/index.html
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Correct. Although a bit dated, 4th on that list behind Wyoming, Nevada and TN. Property Taxes are lower in all of those places. Corporate taxes are lower in Wyoming and Nevada.
FL definitely is a great place for taxes, it's why we live here (among other reasons), but property taxes are the one hindrance when compared to TN, that is for sure.

This is the 2019 list by Property Tax.

wallethub.com

Property Taxes by State

wallethub.com wallethub.com
 
JB said:
but property taxes are the one hindrance when compared to TN
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Are you saying the property extortion is less in TN or FL?
 
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