Moving out of DC because of taxes and wasteful government

[Anonymous]

New poster here. We love DC and aren’t the type who get all worked up over taxes. Having said that, after the first of us croaks the one who’s still kicking will like move out of the city to avoid the estate tax. We really don’t want to pay a million dollars or more to the city after we die. We’d prefer the kids get it.

[Anonymous]

Anonymous wrote:

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Anonymous wrote:

Anonymous wrote:DC government hates rich people. Just look at the map for the "mansion tax' the DC council approved https://www.dcpolicycenter.org/publications/proposed-mansion-tax-generate-tax-revenue-from-small-group-of-property-owners/?mc_cid=eed06d5396&mc_eid=68de121bf0

New York has had a Mansion Tax for many years. It's been in place since 1989. NYC imposed a progressive Mansion Tax starting in 2019.

Does NY hate rich people? Has it damaged property prices in NYC?

Here is what is crazy though about DC vs. NYC. DC imposed a "mansion" tax, yet still has a very robust high-end property market...and it's simple to move out of DC. If you are upset about your Georgetown property tax, you can sell and easily move across the river to some nice neighborhoods in Arlington. It may actually reduce your commute to downtown DC because they have a bunch of metro stops, while Georgetown has none.

As anyone who knows NYC will tell you...it's not a simple move across the river to NJ or moving to Westchester. You just went from possibly a walkable commute to a one hour+ commute. Also, it's not like taxes in those places are low either.

I have quite a few friends who live in Georgetown and no one is clamering to leave.

“Clamoring” and, yes, my friends are leaving and my NYC friends have already left or are finishing the school year, but buying now. I left DC for VA and took my tax dollars with me. This is what smart people do. I lucked out in VA with public schools and Universities and now will retire to Florida -again, for tax reasons - where the DC and NY people are already heading.

You don't sound at all like a wealthy person who would own say a $10MM home in Georgetown. They don't care about paying public school tuition for k-12 or college.

Even most of the Trump lackeys bought in DC...Lutnick, Bessent, et al...when there was nothing stopping them from buying in VA or MD.

Senate-confirmed appointees get to keep their home state tax residency. They can live in DC without being subject to DC local taxes.

They still pay the "mansion" tax on their homes.

[Anonymous]

Cool, buh-bye.

[Anonymous]

Anonymous wrote:New poster here. We love DC and aren’t the type who get all worked up over taxes. Having said that, after the first of us croaks the one who’s still kicking will like move out of the city to avoid the estate tax. We really don’t want to pay a million dollars or more to the city after we die. We’d prefer the kids get it.

+1
I wonder how many of us are out there. I don't mind paying the DC income tax, but the estate tax rankles, and accounts for less than 1% of total DC tax revenue. Personally, I have two adult children with chronic and expensive medical issues (but not severe enough to meet disability standards) and our goal is to allow them to support themselves without government assistance after we die. This is much harder when DC takes a chunk of the estate.

The estate tax seems self-defeating, because it drives older and higher net worth individuals, who use few city services, out of the District, thereby depriving it of the income tax they would otherwise by paying.

[Anonymous]

Anonymous wrote:

Anonymous wrote:kids in college out of dc, no longer own property in dc

How long will you be staying in DC during the year and where will you stay?

If staying with family or friends or in a hotel or Airbnb, never for more than a few weeks at a time, and not working in DC, you are fine.

If you will have any kind of permanent address and will be working in DC, they can and will come after you.

The fact that you are asking this question indicates to me that you are doing something shady, like maybe transferred title in your house to one of your kids or are renting an apartment in their name, but will be living there much of the year, working in DC, and just spending a few months of the year at a vacation home you intend to claim as your domicile. If that's your plan, it's tax fraud and I sincerely hope you get caught and gave a steep penalty.

If you don't want to pay taxes in DC, by all means, move away.

The kids in college are probably getting the DC Tag tuition benefit which is a lot of money

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:kids in college out of dc, no longer own property in dc

How long will you be staying in DC during the year and where will you stay?

If staying with family or friends or in a hotel or Airbnb, never for more than a few weeks at a time, and not working in DC, you are fine.

If you will have any kind of permanent address and will be working in DC, they can and will come after you.

The fact that you are asking this question indicates to me that you are doing something shady, like maybe transferred title in your house to one of your kids or are renting an apartment in their name, but will be living there much of the year, working in DC, and just spending a few months of the year at a vacation home you intend to claim as your domicile. If that's your plan, it's tax fraud and I sincerely hope you get caught and gave a steep penalty.

If you don't want to pay taxes in DC, by all means, move away.

The kids in college are probably getting the DC Tag tuition benefit which is a lot of money

The income limit for this benefit has been lowered to around 600k per year. It only covers 10k for out of state public schools and if you make 500k mfj your additional income taxes (in comparison to VA) exceed 10k per year.

[Anonymous]

Anonymous wrote:How aggressive is DC in going after former residents who establish residency in another state, or a territory like Puerto Rico, but still have family in the city and visit for several months a year?

Don't let the door hit you in the rear.

[Anonymous]

Taxes are lower in DC than VA and MD. Our taxes have been the lowest in DC.

[Anonymous]

Anonymous wrote:

Anonymous wrote:New poster here. We love DC and aren’t the type who get all worked up over taxes. Having said that, after the first of us croaks the one who’s still kicking will like move out of the city to avoid the estate tax. We really don’t want to pay a million dollars or more to the city after we die. We’d prefer the kids get it.

+1
I wonder how many of us are out there. I don't mind paying the DC income tax, but the estate tax rankles, and accounts for less than 1% of total DC tax revenue. Personally, I have two adult children with chronic and expensive medical issues (but not severe enough to meet disability standards) and our goal is to allow them to support themselves without government assistance after we die. This is much harder when DC takes a chunk of the estate.

The estate tax seems self-defeating, because it drives older and higher net worth individuals, who use few city services, out of the District, thereby depriving it of the income tax they would otherwise by paying.

This is why god invented trusts.

[Anonymous]

Anonymous wrote:If you don't like the taxes or government in DC, why do you want to stay here at all?

Still have family in the city

[Anonymous]

Anonymous wrote:Tuh. Don’t move to Maryland

This. I wish I knew

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I moved from DC to VA and the tax difference is really not worth the trouble.

It is if you're in the top tax bracket...

If you're in the top tax bracket in DC (1,000,000+) and you're making decision on where to live over a measly few percent you either have a mental disorder or are abysmally bad at managing your money.

If you're making a million plus a year and you have any issue with money other than "how do I decide which worthy causes I can give all this money I have left over because I couldn't possibly spend that much on myself and my family" there's something seriously wrong with you.

Yeah you go do that with your money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:DC government hates rich people. Just look at the map for the "mansion tax' the DC council approved https://www.dcpolicycenter.org/publications/proposed-mansion-tax-generate-tax-revenue-from-small-group-of-property-owners/?mc_cid=eed06d5396&mc_eid=68de121bf0

New York has had a Mansion Tax for many years. It's been in place since 1989. NYC imposed a progressive Mansion Tax starting in 2019.

Does NY hate rich people? Has it damaged property prices in NYC?

Here is what is crazy though about DC vs. NYC. DC imposed a "mansion" tax, yet still has a very robust high-end property market...and it's simple to move out of DC. If you are upset about your Georgetown property tax, you can sell and easily move across the river to some nice neighborhoods in Arlington. It may actually reduce your commute to downtown DC because they have a bunch of metro stops, while Georgetown has none.

As anyone who knows NYC will tell you...it's not a simple move across the river to NJ or moving to Westchester. You just went from possibly a walkable commute to a one hour+ commute. Also, it's not like taxes in those places are low either.

I have quite a few friends who live in Georgetown and no one is clamering to leave.

“Clamoring” and, yes, my friends are leaving and my NYC friends have already left or are finishing the school year, but buying now. I left DC for VA and took my tax dollars with me. This is what smart people do. I lucked out in VA with public schools and Universities and now will retire to Florida -again, for tax reasons - where the DC and NY people are already heading.

Moving to Fl is lame. Some of us plan to move to more interesting locations.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:DC government hates rich people. Just look at the map for the "mansion tax' the DC council approved https://www.dcpolicycenter.org/publications/proposed-mansion-tax-generate-tax-revenue-from-small-group-of-property-owners/?mc_cid=eed06d5396&mc_eid=68de121bf0

New York has had a Mansion Tax for many years. It's been in place since 1989. NYC imposed a progressive Mansion Tax starting in 2019.

Does NY hate rich people? Has it damaged property prices in NYC?

Here is what is crazy though about DC vs. NYC. DC imposed a "mansion" tax, yet still has a very robust high-end property market...and it's simple to move out of DC. If you are upset about your Georgetown property tax, you can sell and easily move across the river to some nice neighborhoods in Arlington. It may actually reduce your commute to downtown DC because they have a bunch of metro stops, while Georgetown has none.

As anyone who knows NYC will tell you...it's not a simple move across the river to NJ or moving to Westchester. You just went from possibly a walkable commute to a one hour+ commute. Also, it's not like taxes in those places are low either.

I have quite a few friends who live in Georgetown and no one is clamering to leave.

“Clamoring” and, yes, my friends are leaving and my NYC friends have already left or are finishing the school year, but buying now. I left DC for VA and took my tax dollars with me. This is what smart people do. I lucked out in VA with public schools and Universities and now will retire to Florida -again, for tax reasons - where the DC and NY people are already heading.

Moving to Fl is lame. Some of us plan to move to more interesting locations.

I’m moving to Dubai. No taxes and no crime. No degenerates like in Florida either.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I moved from DC to VA and the tax difference is really not worth the trouble.

It is if you're in the top tax bracket...

If you're in the top tax bracket in DC (1,000,000+) and you're making decision on where to live over a measly few percent you either have a mental disorder or are abysmally bad at managing your money.

If you're making a million plus a year and you have any issue with money other than "how do I decide which worthy causes I can give all this money I have left over because I couldn't possibly spend that much on myself and my family" there's something seriously wrong with you.

Seems like a lot until you make that much.

I make that much and I honestly don't think about my taxes at all. It's not like I check my paystub every 2 weeks. I think more about my charitable causes than I do about taxes. Most of my money goes into my 401k, 457 and investment accounts.