Is California Domicile a Bad Idea?

[SteveSueMac]

Originally Posted by Mollysdad

Don't think there are any loopholes, there aren't. There is the law. Congress wrote the law in a convoluted way to make it possible to reward their friends and punish their enemies. That's why we'll never have a flat tax in our lifetimes.

I'm afraid we're in violent agreement. [emoji20]

So - is CA residency a good or bad idea anyway?

[mistermike]

A friend of mine was seriously looking to moving to CA. He learned quite by accident how CA works when it comes to residency for tax purposes. He says that the tax people don't look at the amount of time instate but what you might do that demonstrates INTENT to reside there according to the state tax people. This could include buying a car, renting a home, joining a country or other club, seeing a doctor, things like that. He left in a big hurry because being a rather wealthy individual, he was looking at a levy of 13% of his world-wide income. This would be, of course, in addition to his federal obligation and possibly his state of residence as well.

[Len n Jeanne]

Any comments on southern Nevada? (Not Las Vegas metropolitan area, that is.) We live in Canada but one of us is a dual US citizen who can see some small advantages in establishing state residency, provided it didn't have to be our primary domicile.

And yeah. Payin' income tax in both countries.

[markdoane]

There is another factor to consider in your choice of residency - quality of life.

I live in Minnesota and we pay fairly high state income taxes compared to other states.

But I think it's a fair price to pay for good roads, great state parks, excellent health care infrastructure, fine University and state colleges, honest government and good jobs.

But you don't need to move here.

[McDave]

Thanks for that, SteveSueMac. While Hand's quote was often referenced over the course of my career as a CPA, I guess I had to wait until I was retired to find out he hadn't made it from SCOTUS!

[pmclemore]

Avoidance involves knowing and following the law.

Evasion involves lying.

No fine line as far as I am concerned.

Pat

[BigSxyWhtGuy]

It sounds like a good idea to you. Being an Los Angeles resident myself, we just purchased a 30 classic and are looking to convert domicile to FL. A lot of YouTube videos do exist about this topic and all of it usually circles around taxes and vehicle registration. Saving on taxes means you can earn less and still enjoy life. That's the whole point of full timing for us -- lower overall cost of living and experience life beyond "the American dream"

Obviously, you need a mailing service or family to be able to register in another state. Mailing service does cost something but it's usually not as much as CA income taxes! It is required in most situations to have your vehicle physicially in the state you registering it at even with renewal so to some people's point, don't pick a state you have no intention of ever going back to. Remember CA also has the strictest smog laws in the country as well which may cause additional vehicle repairs or maintenance that you may not get elsewhere.

I'm looking forward to our adventure. Hoping for the best for you as well!

[Boxite]

Originally Posted by mistermike

A friend of mine was seriously looking to moving to CA. He learned quite by accident how CA works when it comes to residency for tax purposes. He says that the tax people don't look at the amount of time instate but what you might do that demonstrates INTENT to reside there according to the state tax people. This could include buying a car, renting a home, joining a country or other club, seeing a doctor, things like that. He left in a big hurry because being a rather wealthy individual, he was looking at a levy of 13% of his world-wide income. This would be, of course, in addition to his federal obligation and possibly his state of residence as well.

Give unto Caesar that which is Caesar's....

There is no sympathy from me towards those that have wealth and don't want to support the system which gave them that.

If I owe a tax because of my circumstance... I pay it. If there's a legitimate reason I don't owe it... I don't pay it. (and explain why in the tax document)
I don't "game" the system. And there IS a difference.

[Dingo Girl]

Originally Posted by Boxite

Give unto Caesar that which is Caesar's....

There is no sympathy from me towards those that have wealth and don't want to support the system which gave them that.

If I owe a tax because of my circumstance... I pay it. If there's a legitimate reason I don't owe it... I don't pay it. (and explain why in the tax document)
I don't "game" the system. And there IS a difference.

Thank you!

[demijac]

If you are too young for Medicare and buy private health insurance, be careful where you establish your new domicile - especially if your new address is in a rural county where there is often less competition for your business.

[Shiny16]

Originally Posted by Boxite

Give unto Caesar that which is Caesar's....

There is no sympathy from me towards those that have wealth and don't want to support the system which gave them that.

If I owe a tax because of my circumstance... I pay it. If there's a legitimate reason I don't owe it... I don't pay it. (and explain why in the tax document)
I don't "game" the system. And there IS a difference.

Exactly the point I was trying to make. Just not as eloquent.