Moving Residency for Tax Purposes - Anyone Done This?

[Anonymous]

We've lived in DC for almost 30 years. Youngest DC to graduate from high school in two years. We own a vacation home in another state with much lower tax rates.

Considering changing residency, but not selling DC SFH. As I understand it, as long as we spend 6 months in vacation home state, we can claim residency there. This will obviously be more doable as empty nesters.

Has anyone here done this? Just wondering how complicated the process really is.

[Anonymous]

People do this all the time, there are apps that help track where you are when to prove you are spending less than 6 mo in DC

[Anonymous]

Personally I think it's pathetic. But yea, sure you can do it.

[Anonymous]

Anonymous wrote:People do this all the time, there are apps that help track where you are when to prove you are spending less than 6 mo in DC

+1 Do a google. Half the senior citizen population moves to Florida to avoid income taxes.

[Anonymous]

Friends of mine did. They then hadt their vehicles registered in that state with no inspection and no personal property tax.

[Anonymous]

Anonymous wrote:Personally I think it's pathetic. But yea, sure you can do it.

I'm not sure OP will care, but why do you think it's "pathetic?"

[Anonymous]

Plenty of people do this. Keep track of credit card statements in case you have to prove that you were actually there for 6 months.

[Anonymous]

My retired relatives do this. They have a really nice Airstream trailer and spend at least 6 months of the year at an RV park in Florida.

You need to register your vehicles there, change your driver's license, and voting registration to help establish tax residency. One thing to watch for is that in low income tax states, the government finds other ways to raise revenue, like through property tax, personal property tax, or sales tax. For example Tennessee has no state income tax but sales tax is 7-9% depending on what city you're in. Texas has no state income tax but property tax is about 2% (around the DMV it's around 1%).

[Anonymous]

It's very doable and could potentially save a lot in taxes if the other state is a place you truly want to live 6+ months of the year.

[Anonymous]

Anonymous wrote:Plenty of people do this. Keep track of credit card statements in case you have to prove that you were actually there for 6 months.

Exactly. Local tech CEO Saylor got busted for this. In his case, he posted photos on Insta from his yacht in DC on days he claimed he was not in DC:

https://www.cnbc.com/2024/06/03/bitcoin-billionaire-michael-saylor-settles-dc-tax-fraud-case-for-40-million.html

[Anonymous]

You need to change all your registrations…but you just need to prove you weren’t in DC for 6 months. You don’t have to spend 183 days at your 2nd home…you just have to prove you weren’t in DC for 183 days.

So, yes keep receipts and travel itineraries.

[Anonymous]

Anonymous wrote:Plenty of people do this. Keep track of credit card statements in case you have to prove that you were actually there for 6 months.

Because OP is planning to keep their place here, no doubt will be here quite a bit, will continue to rely on our services, but wants to avoid paying taxes. Then they'll complain about how things are here, without putting their money where their mouth is. Not to mention they're likely to cheat and be here more than six months a year.

When doing your math, OP, don't forget you lose the homestead exemption on your house, the opportunity for a 50 percent reduction in your property taxes through the senior citizen discount, the right to register your car here and get zoned parking, etc. etc. etc. Plus it's just a shitty thing to do to the city and it makes you a cheapo. If you have to change your residency to avoid city taxes you're not comfortable enough to retire.

Yes, we have a second home in a much more friendly tax state. No, we don't consider this.

[Anonymous]

Anonymous wrote:People do this all the time, there are apps that help track where you are when to prove you are spending less than 6 mo in DC

Having to track your whereabouts to prove your non-residency to save a few bucks? No thanks.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Plenty of people do this. Keep track of credit card statements in case you have to prove that you were actually there for 6 months.

Because OP is planning to keep their place here, no doubt will be here quite a bit, will continue to rely on our services, but wants to avoid paying taxes. Then they'll complain about how things are here, without putting their money where their mouth is. Not to mention they're likely to cheat and be here more than six months a year.

When doing your math, OP, don't forget you lose the homestead exemption on your house, the opportunity for a 50 percent reduction in your property taxes through the senior citizen discount, the right to register your car here and get zoned parking, etc. etc. etc. Plus it's just a shitty thing to do to the city and it makes you a cheapo. If you have to change your residency to avoid city taxes you're not comfortable enough to retire.

Yes, we have a second home in a much more friendly tax state. No, we don't consider this.

Such a strange take regarding a very commonplace plan that countless people in high-tax areas use. Plus, it makes no sense. Op will be somewhere for half the year and somewhere else for the other half. She'll use services in both jurisdictions, but you think DC has some sort of priority claim because she lived here first? What if she spends 7 months in the other location?

Also, "a shitty thing to do to the city?" Hilarious.

Finally, OP didn't say she needed to do it in order to retire, just that it would be financially beneficial.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Plenty of people do this. Keep track of credit card statements in case you have to prove that you were actually there for 6 months.

Because OP is planning to keep their place here, no doubt will be here quite a bit, will continue to rely on our services, but wants to avoid paying taxes. Then they'll complain about how things are here, without putting their money where their mouth is. Not to mention they're likely to cheat and be here more than six months a year.

When doing your math, OP, don't forget you lose the homestead exemption on your house, the opportunity for a 50 percent reduction in your property taxes through the senior citizen discount, the right to register your car here and get zoned parking, etc. etc. etc. Plus it's just a shitty thing to do to the city and it makes you a cheapo. If you have to change your residency to avoid city taxes you're not comfortable enough to retire.

Yes, we have a second home in a much more friendly tax state. No, we don't consider this.

Such a strange take regarding a very commonplace plan that countless people in high-tax areas use. Plus, it makes no sense. Op will be somewhere for half the year and somewhere else for the other half. She'll use services in both jurisdictions, but you think DC has some sort of priority claim because she lived here first? What if she spends 7 months in the other location?

Also, "a shitty thing to do to the city?" Hilarious.

Finally, OP didn't say she needed to do it in order to retire, just that it would be financially beneficial.

My guess is she has a beach house in DE. Cheapo.