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

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:switched to Va. from DC. Will save a bunch in taxes and my kids will save a lot more in estate taxes.

This is a big issue for me as well. I am still in DC but definitely have though of moving to Virginia because of the estate taxes.

I am guessing DC collects very little revenue from its estate tax but it discourages better off people, especially retirees, from staying or moving to DC. Another wrong headed move from our city council.

In my case, just transferred residency to the second home which - honestly - is where we began spending the majority of our time - although its pretty close. This cuts our state tax in half and reduces estate tax by a whopping 16 percent.

By the way, it was one of the smoothest in-person interactions I have ever had with government. The VA., DMV has an interactive guide that spits out a chart of the documents you need to bring. Everyone was pleasant. I gave over the docs, they punched a hole in my dc license and automatically switched my voter registration. The staffer apologized for the cumbersome process. I was like "you have no idea."

What about real estate tax and car tax?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have rental properties in DC which are the main source of my income. Honestly after all the write offs my income state tax is under $5K/year. DC gives benefits like FMLA for example where you can get the city pay 6 weeks of ANNUAL leave to take care of a family member. I just took one and will do so next year. Also, DC has free preschools

Also the Obamacare healthcare options are better than in most states.

Not for anyone who, like OP, can afford living/ working in 2 states.

Obamacare is essentially a massive subsidy from the upper middle class to the dependent class. OP is likely to do better as a resident in some low-cost state even in terms of healthcare.

[Anonymous]

Anonymous wrote:

Anonymous wrote:After I become a Va., resident, do I have to officially inform dC that I'm no longer a District resident?

This is a good question. I've looked into it and I couldn't find anything. If you pull a drivers license in a new state, you will be required to forfeit your current DC license. I'm guessing that the DMV records are shared across states? I have no idea.

If you want to sever DC residency, you really need to do it all - car registration, drivers license, voter registration, changing address for all bills/bank accounts/investments accounts need to be moved to Virginia. Do not leave any paper-trail in DC.

In DC, you can cancel your voter registration here: https://www.dcboe.org/Voters/Register-To-Vote/Cancel-Voter-Registration

Definitely do that.

You can also indicate when filing DC income tax that "this is my last filing" or similar language.

We did this and also cancelled our car registration, and DC kindly mailed us a nice check for the rest of the year.

The process of leaving DC was very smooth. As some PPs said, the key is to set a proof of domicile in some other state and to spend fewer than 183 days/ year in DC. Then byebye high-and-increasing state taxes.

[Anonymous]

My tax situation improves on every front. Property tax is at a lower rate. Also - I’m ACA insured - my premiums will go down. From a financial pov - in my situation - made absolutely no sense to remain domiciled in dc.