Reply to Shocker, MD Income taxes to increase

Forum Index » Metropolitan DC Local Politics

Reply to "Shocker, MD Income taxes to increase"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]
[i]Under the proposal, the state would establish two new tax brackets. Individual earnings beyond $500,000 would be taxed at 6.25% and earnings above $1 million would be taxed at 6.5%. The state would also add a 1% surcharge on capital gains taxes for the next four years.[/i][/quote]

The interesting thing about capital gains is it generally applies when you sell something, so you can time when you do that. Looks like I'll be holding off on some transactions until 4 years from now. Lukcily I got a bunch done in 2024 anticipating tax uncertainty is 2025.[/quote]

Yes, I had many tax clients that strategically time the sale of their business or stocks after changing residence from MD to VA. This is very common practice and it’s perfectly legal to do. [/quote]

I am selling my business in 2027 and moving to VA..then I'll move back once i am retired and can artificially control my income ;)[/quote]

That might be legally dubious depending on the circumstances. You need to intend for the move to be permanent and you need to pass the “teddy bear” test. If you don’t do this there is a high probability you will fail an MD residency audit. [/quote]

I thikn it's fair to say that someone selling a business for millions will seek advice of a CPA and lawyer on such a move.

I'm in a similar situation. What we plan to do is move our primary residence to Delaware as soon as our youngest is finished with high school, then start the process of sale of my business.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics