DC residency, taxes, etc, after buying a second home in a no-tax state

[Anonymous]

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

You do realize that the state you’re living in could go after you for unpaid tax? If you live there more than six months a year, you owe tax there. They don’t care that DC’s taxes are higher. Your residence is where you live the majority of the year. Period.

They have no way of knowing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

If you ever needed those benefits, you better believe they will question whether you are actually a resident if you are living in another state.

No, they won't. When they look me up, they're going to see my DC address, DC voter registration, DC driver's license, DC tax returns, and DC property taxes paid. I have more than enough proof that I'm a DC resident.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

Tax law is just that - a set of laws that you can read and follow. If you're legitimately a resident of a lower tax State, then file in that State. You aren't violating the letter or the spirit of tax law. Pathetic is being dumb money who pays more than the laws require them to. You'd be better off just donating the excess to charity if you wanted.

Like I said, I don't want to give up my DC residency. So, while I no longer spend anywhere near six months year in DC, I keep my DC driver's license, voting registration, etc. I also claim the homestead exemption on my DC home and pay my state taxes there. All I pay here (in the other state) is my real property tax.

What are the benefits of keeping DC residency? If you’re spending a lot of time at a 2nd home, you clearly don’t have young kids to take advantage of free preschool. DC income taxes are not that low. What’s the benefit?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

Can you elaborate?

I am a different person, but DC TAG and no DC or federal taxes on ANY municipal bonds are two that we appreciate.

I am sure there are others.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

You do realize that the state you’re living in could go after you for unpaid tax? If you live there more than six months a year, you owe tax there. They don’t care that DC’s taxes are higher. Your residence is where you live the majority of the year. Period.

They have no way of knowing.

Really? Are you parking your car with DC tags in front of your house? Tax enforcement in VA, for example, has been known to drive around and take note of cars with out of state plates that are routinely parked in front of homes.

Are you working remotely? Your employer could be (and should be) monitoring the geographic location from which you are signing in for work. Remote work creates tax and compliance implications for your employer as well as yourself. Not to mention, the employer is responsible for withholding tax for the state in which you are actually working. Most have the IT Department check periodically.

There are other ways to be caught, as well. Of course, there is the fact that it’s illegal, as well as unethical, but you don’t care about that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

Can you elaborate?

I am a different person, but DC TAG and no DC or federal taxes on ANY municipal bonds are two that we appreciate.

I am sure there are others.

DC tag doesn't come close to covering the difference between in and out of state tuition anywhere

Your much better off changing your residency

And who owns enough munis for the tax rate to matter?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

Can you elaborate?

I am a different person, but DC TAG and no DC or federal taxes on ANY municipal bonds are two that we appreciate.

I am sure there are others.

DC tag doesn't come close to covering the difference between in and out of state tuition anywhere

Your much better off changing your residency

And who owns enough munis for the tax rate to matter?

You’d be crazy to give up in state tuition somewhere else for DC TAG.

If PP is employed, they’ve either lied to their employer about where they’re working, or their employer is breaking the law by withholding for the wrong jurisdiction.

Not to mention that they’re using public services and infrastructure in their new state of residence that they’re not paying for.

Also, the whole planning to take paid FMLA leave every year is pretty fishy.

PP is a terrible person, and it doesn’t even make any sense.

[Anonymous]

DC homestead tax benefit is a $72k reduction on the assessment of your home. (Hard to imagine that’s significant for most homeowners in dc.) I’m thinking about shifting my residency to our second home in Va.

Here are the two major benefits.

1. Effectively cutting my state tax bill in half.
2. I get to vote for Democrats in a state where that matters.

I spend about half my time in Virginia already.

[Anonymous]

Anonymous wrote:DC homestead tax benefit is a $72k reduction on the assessment of your home. (Hard to imagine that’s significant for most homeowners in dc.) I’m thinking about shifting my residency to our second home in Va.

Here are the two major benefits.

1. Effectively cutting my state tax bill in half.
2. I get to vote for Democrats in a state where that matters.

I spend about half my time in Virginia already.

3. In-state tuition for an awesome public university system. Frankly, I think VA is 2nd only to California in terms of having the best public university system in the U.S.

[Anonymous]

Anonymous wrote:DC homestead tax benefit is a $72k reduction on the assessment of your home. (Hard to imagine that’s significant for most homeowners in dc.) I’m thinking about shifting my residency to our second home in Va.

Here are the two major benefits.

1. Effectively cutting my state tax bill in half.
2. I get to vote for Democrats in a state where that matters.

I spend about half my time in Virginia already.

The DC Homestead property tax benefit knocks like $700 off your annual tax bill. It's not enough of a benefit to stick around DC or risk an audit for fake residency.

DC's big benefit is PK3 and PK4. We have a kid entering PK3 this fall and it's going to save us $50K over two years. That's worth sticking around.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

Tax law is just that - a set of laws that you can read and follow. If you're legitimately a resident of a lower tax State, then file in that State. You aren't violating the letter or the spirit of tax law. Pathetic is being dumb money who pays more than the laws require them to. You'd be better off just donating the excess to charity if you wanted.

Like I said, I don't want to give up my DC residency. So, while I no longer spend anywhere near six months year in DC, I keep my DC driver's license, voting registration, etc. I also claim the homestead exemption on my DC home and pay my state taxes there. All I pay here (in the other state) is my real property tax.

What are the benefits of keeping DC residency? If you’re spending a lot of time at a 2nd home, you clearly don’t have young kids to take advantage of free preschool. DC income taxes are not that low. What’s the benefit?

I’m thinking more in terms of possible future benefits. DC has unmatched social programs and healthcare benefits, among other things.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

You do realize that the state you’re living in could go after you for unpaid tax? If you live there more than six months a year, you owe tax there. They don’t care that DC’s taxes are higher. Your residence is where you live the majority of the year. Period.

They have no way of knowing.

Really? Are you parking your car with DC tags in front of your house? Tax enforcement in VA, for example, has been known to drive around and take note of cars with out of state plates that are routinely parked in front of homes.

Are you working remotely? Your employer could be (and should be) monitoring the geographic location from which you are signing in for work. Remote work creates tax and compliance implications for your employer as well as yourself. Not to mention, the employer is responsible for withholding tax for the state in which you are actually working. Most have the IT Department check periodically.

There are other ways to be caught, as well. Of course, there is the fact that it’s illegal, as well as unethical, but you don’t care about that.

I don’t work. I retired early, nearly a decade ago. My second home is on 7 acres and has a garage. It would be rather difficult for “tax enforcers” to see my car.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

Tax law is just that - a set of laws that you can read and follow. If you're legitimately a resident of a lower tax State, then file in that State. You aren't violating the letter or the spirit of tax law. Pathetic is being dumb money who pays more than the laws require them to. You'd be better off just donating the excess to charity if you wanted.

Like I said, I don't want to give up my DC residency. So, while I no longer spend anywhere near six months year in DC, I keep my DC driver's license, voting registration, etc. I also claim the homestead exemption on my DC home and pay my state taxes there. All I pay here (in the other state) is my real property tax.

What are the benefits of keeping DC residency? If you’re spending a lot of time at a 2nd home, you clearly don’t have young kids to take advantage of free preschool. DC income taxes are not that low. What’s the benefit?

I’m thinking more in terms of possible future benefits. DC has unmatched social programs and healthcare benefits, among other things.

Like subsidized/free elder care? What are the healthcare benefits?

Help me see the light! Though, I shudder to think about the DC elder care system.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

You do realize that the state you’re living in could go after you for unpaid tax? If you live there more than six months a year, you owe tax there. They don’t care that DC’s taxes are higher. Your residence is where you live the majority of the year. Period.

They have no way of knowing.

Really? Are you parking your car with DC tags in front of your house? Tax enforcement in VA, for example, has been known to drive around and take note of cars with out of state plates that are routinely parked in front of homes.

Are you working remotely? Your employer could be (and should be) monitoring the geographic location from which you are signing in for work. Remote work creates tax and compliance implications for your employer as well as yourself. Not to mention, the employer is responsible for withholding tax for the state in which you are actually working. Most have the IT Department check periodically.

There are other ways to be caught, as well. Of course, there is the fact that it’s illegal, as well as unethical, but you don’t care about that.

I don’t work. I retired early, nearly a decade ago. My second home is on 7 acres and has a garage. It would be rather difficult for “tax enforcers” to see my car.

Yet you said you were keeping DC residency so you can take FMLA leave?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

Tax law is just that - a set of laws that you can read and follow. If you're legitimately a resident of a lower tax State, then file in that State. You aren't violating the letter or the spirit of tax law. Pathetic is being dumb money who pays more than the laws require them to. You'd be better off just donating the excess to charity if you wanted.

Like I said, I don't want to give up my DC residency. So, while I no longer spend anywhere near six months year in DC, I keep my DC driver's license, voting registration, etc. I also claim the homestead exemption on my DC home and pay my state taxes there. All I pay here (in the other state) is my real property tax.

What are the benefits of keeping DC residency? If you’re spending a lot of time at a 2nd home, you clearly don’t have young kids to take advantage of free preschool. DC income taxes are not that low. What’s the benefit?

I’m thinking more in terms of possible future benefits. DC has unmatched social programs and healthcare benefits, among other things.

Like subsidized/free elder care? What are the healthcare benefits?

Help me see the light! Though, I shudder to think about the DC elder care system.

Well, no wonder. It is true that if PP is so poor that they are concerned about needing to rely on DC social programs and healthcare benefits, then taxes aren’t an issue.