Moving Residency for Tax Purposes - Anyone Done This?

[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.

Well, you’re a fool.

[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.

Well, you’re a fool.

Maybe. But I'm sure as hell not gonna start counting my days to save taxes.

OP isn't saying "we're finally empty nesters and can move to where we want and away from DC." Nope. She's saying that as empty nester she thinks it's "doable" to be here less than six months. So yeah it's all about structuring your very whereabouts around state incomes taxes. Pretty sad.

[Anonymous]

Anonymous wrote:

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.

Well, you’re a fool.

Maybe. But I'm sure as hell not gonna start counting my days to save taxes.

OP isn't saying "we're finally empty nesters and can move to where we want and away from DC." Nope. She's saying that as empty nester she thinks it's "doable" to be here less than six months. So yeah it's all about structuring your very whereabouts around state incomes taxes. Pretty sad.

Not really. Assuming you like it in DC and like the other location, I think it could be a lot of fun and very freeing!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

Well, you’re a fool.

Maybe. But I'm sure as hell not gonna start counting my days to save taxes.

OP isn't saying "we're finally empty nesters and can move to where we want and away from DC." Nope. She's saying that as empty nester she thinks it's "doable" to be here less than six months. So yeah it's all about structuring your very whereabouts around state incomes taxes. Pretty sad.

Not really. Assuming you like it in DC and like the other location, I think it could be a lot of fun and very freeing!

Except that's not what OP is saying. What about "we think it's doable" do you not understand? And what's "freeing" about counting your days?

[Anonymous]

We’re DINKs and considered this when DH was up for a c-suite promo that would have put us around $2M HHI. If we rented an apartment in a no income tax state the tax savings were something like $100K+ annually compared to staying in nova. Promo didn’t work out so we stayed put.

[Anonymous]

We’re DINKs and considered this when DH was up for a c-suite promo that would have put us around $2M HHI. If we rented an apartment in a no income tax state the tax savings were something like $100K+ annually compared to staying in nova. Promo didn’t work out so we stayed put.

But then you'd have to stay in an apartment for 6 months of the year. Doesn't sound so nice.

[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.

NP. You only get the senior tax rate if your income is below a certain threshold. Unlikely for someone who already owns two homes. If it's a "shitty thing to do to the city," does that mean that having primary residency here has been a shitty thing to do all these years to the community where OP has her second home? Maybe this just evens it up?

We're going to do the exact same thing, OP, but just for 2 years, because our second home is too remote to live there permanently. Then we plan to sell the second home, avoiding capital gains taxes, and relocate back. We've paid top bracket Bethesda taxes without using public schools or any kind of social service here. So I don't feel a bit bad about this plan. And it's really not that big a deal to avoid being in DC for more than 183 days and document it.

[Anonymous]

Anonymous wrote:

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.

Delaware state income tax is 6.6% on income above $60k, though no local "piggyback" tax. MD and VA have slightly lower state rates, but when piggyback is added in they are a little bit higher.

I wouldn't move to DE just for state income tax savings, as they are minor. For a bigger benefit and shorter drive, move to PA. Flat state income tax at 3.07%, though local tax can add 0.5-3.75% on top of that, so just pick where in PA wisely.

Or just move to FL, no state income tax at all.

[Anonymous]

A few bucks? Florida has no State income tax and homestead exemption property tax break for residence.

[Anonymous]

Anonymous wrote:

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.

Well, you’re a fool.

Maybe. But I'm sure as hell not gonna start counting my days to save taxes.

OP isn't saying "we're finally empty nesters and can move to where we want and away from DC." Nope. She's saying that as empty nester she thinks it's "doable" to be here less than six months. So yeah it's all about structuring your very whereabouts around state incomes taxes. Pretty sad.

Counting days isn't difficult. If you drive to the location, just use gas receipts from filling up along the way to track it. If you fly, even easier.

I used to live abroad and needed to prove I was out of the US for 330 days/year to get the US income tax exemption. I had my "spreadsheet" pretty much filled out in advance since I'd just mark it every time I bought a flight to the US.

[Anonymous]

My friend moved to FL the year before he sold his company (it helped the kids had just gone off to college). He saved over $500k in VA income taxes by doing so, in the year he sold his company.

[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.

NP. You only get the senior tax rate if your income is below a certain threshold. Unlikely for someone who already owns two homes. If it's a "shitty thing to do to the city," does that mean that having primary residency here has been a shitty thing to do all these years to the community where OP has her second home? Maybe this just evens it up?

We're going to do the exact same thing, OP, but just for 2 years, because our second home is too remote to live there permanently. Then we plan to sell the second home, avoiding capital gains taxes, and relocate back. We've paid top bracket Bethesda taxes without using public schools or any kind of social service here. So I don't feel a bit bad about this plan. And it's really not that big a deal to avoid being in DC for more than 183 days and document it.

The threshold for qualifying for the senior citizen tax discount in DC is currently around $170k. (It adjusts every year.) Plenty of well off retirees qualify. We own a place in DC and have a second home and we do.

[Anonymous]

Anonymous wrote:A few bucks? Florida has no State income tax and homestead exemption property tax break for residence.

Yea, but you have to live in Florida.

[Anonymous]

You have to actually move- change all of the "things" - voter registration, car, driver's license. Your DC home becomes your second home, no homestead exemption in DC, and so forth. Spend less than 183 days in DC (including half days). Yes, at that point you're a resident of another state with property in DC. Nothing shady about that.
These things are only questionable when you live in one state while claiming you live in another. I think residency audits are more common when people leave high tax states for low tax states without really leaving. NYC, for instance, is aggressive about residency.

[Anonymous]

Anonymous wrote:

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.

Well, you’re a fool.

Maybe. But I'm sure as hell not gonna start counting my days to save taxes.

OP isn't saying "we're finally empty nesters and can move to where we want and away from DC." Nope. She's saying that as empty nester she thinks it's "doable" to be here less than six months. So yeah it's all about structuring your very whereabouts around state incomes taxes. Pretty sad.

I have no obligations to Maryland, where I have paid plenty of taxes over the years. I am planning retirement split in two states, taking advantage of the lower taxes offered, though it is not the only reason. It is not just lower income taxes but even other types of taxes are lower and it adds up substantially.

My aunt and uncle have Florida residency but spend most of that time in the Bahamas with May through October in Maryland. Have done so for years.