Second home in a different state- anything to consider?

[Anonymous]

My sibling is planning to rent a second home in a different state to have a comfortable base when they visit family (mid-atlantic east coast state) and work remotely for long periods of time. They mainly live in California and plan to keep that as their primary residence for tax/other purposes, but I thought I’d check with this group because I’m having trouble finding any information about what to consider when you do this and thought this audience might know more than other forums. I’m helping them research this because this is something I’m interested in doing long term.

What kind of things does one need to consider if you’re renting a second home & working remotely for long periods of time in a different state? Any clever tips/life hacks here as well?

[Anonymous]

Make sure to track how many days a year you are sleeping in California. Most states have a six month rule to maintain residency for tax purposes. The other state also likely has a rule about spending more than 6 months and then you have established residency. Have a clear way to track it in case you get audited.

[Anonymous]

I don't understand what the questions or concerns are. Are you talking about taxes?

[Anonymous]

This is OP: Trying to think of must do's/potential gotchas here, e.g. tax things, but clever tips/life hacks welcome as well

[Anonymous]

LOL California's Franchise Tax Board is going to nail your brother's butt to the wall.

You brother needs to work closely with accountants or tax attorneys in BOTH states to figure out (1) how to sever ties with California and (2) how to establish bona fide residency in the new state.

If you brother is going to keep the California house, it will be very difficult to escape California taxation. The state will straight up put a lien on his house if he doesn't pay his state taxes.

[Anonymous]

Anonymous wrote:My sibling is planning to rent a second home in a different state to have a comfortable base when they visit family (mid-atlantic east coast state) and work remotely for long periods of time. They mainly live in California and plan to keep that as their primary residence for tax/other purposes, but I thought I’d check with this group because I’m having trouble finding any information about what to consider when you do this and thought this audience might know more than other forums. I’m helping them research this because this is something I’m interested in doing long term.

What kind of things does one need to consider if you’re renting a second home & working remotely for long periods of time in a different state? Any clever tips/life hacks here as well?

Let him or her figure it out

[Anonymous]

Security cams to monitor for squatters.

[Anonymous]

Probably nothing to worry about if it's just a second home and his telework from there is situational, while he is still domiciled in CA.

[Anonymous]

Renting isn't a problem, buying implicates estate planning considerations.