Retirement to tax friendly states

[FLJOE]

Originally Posted by Jabber Jaw

Question(s)!

Have any of you bought a piece of property in Florida, then used that address for titling purposes for an RV? And staying there a short time each year.

But yet still live or have another residence in another state?

I was under the impression that Florida is a dual residency state, where many folks live there some & in another state, as their domicile state.

Considering what to do, & how to do it, but we will not be "full timing"! However, do plan to travel a significant amount of time each year!

Trying to learn about what is best to do!

Thanks

A few years ago we had sold everything up north and hit the road full time. The second year after wintering in SW Florida we decided to buy a home and go back to traveling 5 or 6 months a year.

We had a great pool home for a couple of years. Some folks in our neighborhood still owned homes in other states besides there homes in SW Florida. Some even had a car registered in Florida besides owning their home down there. The only major difference was they could not claim the homestead for their Florida real estate taxes because they still owned a property in another state, whereas we could claim it. Our property taxes were extremely cheap.

So, IMHO you could own a home in Florida plus another state, and register your RV and/or any other vehicles in Florida. As far as where you would be filing your income taxes that may come down to a different set of factors.

[Smitty77]

Originally Posted by Jabber Jaw

Question(s)!

Have any of you bought a piece of property in Florida, then used that address for titling purposes for an RV? And staying there a short time each year.

But yet still live or have another residence in another state?

I was under the impression that Florida is a dual residency state, where many folks live there some & in another state, as their domicile state.

Considering what to do, & how to do it, but we will not be "full timing"! However, do plan to travel a significant amount of time each year!

Trying to learn about what is best to do!

Thanks

I do occasionally get long winded! Look at the bottom of my post #16 on this thread. Our Domicile is South Dakota (No need to buy property. Same in Florida too, as I understand it.). Our RV is our Primary Residence, and Schedule A our Interest on the small RV loan we have (We financed 50%, as rates were very low in 2010 when we bought the used coach.) We retained a Vacation Home, and Schedule A our Mortgage accordingly, in San Diego. While prices are high, we're in the San Diego region, we're going to cash out on one of our properties, probably the Rental. But perhaps both. (Unique to California, is for now, we then have up to 2 years to buy another property of less value then the one we sold, to transfer our Lower Prop 13 Property Tax Base to a different property. We so we may watch housing market, and leverage back into a smaller property to preserve the lower Property Tax (About 1/3 of current Property Taxes on a similar property, if buying today.). I say 'may' - as we do not see San Diego as our Forever Home.)

I believe you can do what you want to do, without buying land in Florida - unless of course you wish to. And you do not need to do it, to establish a legal Domicile.

We choose South Dakota, due to our math showed it would be the lowest costing state for us to Domicile in. Adding up Income Tax = 0, Vehicle Registration for RV and Car = 1/8th of what our last costs were in California, Sale Taxes was over 1/2 less in out SD County then it was in California. For some, us included, Health Insurance is a factor. For those Pre 65 in good health, their are non Health Insurance policies available, that are ACA compliant. (Currently not a factor, as no Taxing Penalty via IRS now for Non Compliant. I'd say the South Dakota options for a true 50 State PPO type Health Insurance, was not as good as those of Texas and or Florida at the time we retired in 2013. Now Florida and Texas also have changed what is available, so not as much of a difference as before. The key here is if your Medicare Age, or close, and an reasonable good health (We are, and basically pay out of pocket from our HSA funds for medical services.), then the Health Insurance is not a factor. (We basically covered our medical expenses each year out of pocket, as fortunately we're in good health. And that is why we funded a HSA, to cover those expenses until 65 Medicare kicked in. It has for me, and the whipper snapper kid wife of mine, is still a few years away!)

I suggest you continue your research, compare states for Domicile, until such time you are ready to put down roots into a new location. For us, the savings on just not paying California Income Taxes, has covered the bulk of our traveling costs each year. Other states Income Taxes are not as high, so may not be as much of a factor. And, we did know that California, for many reasons, was not where we were going to put down our roots.

Good luck to you, and all. For sure, many options, and many ways to approach this. But I suggest anyone doing this, do it legally - as it is not worth the aggravation of possibly getting caught, trying to do something not legal, in regards to Domicile.... Learn the rules, and follow them, and for us - we document everything in a yearly log, so we have not doubt we are legal, and can show we are legal, about how long we're in a state.

Best,
Smitty

[Bowl300]

I can’t find info on how TN charges for their motorhome registration every year. Or other states for that matter...the sites I’ve looked at are not specific enough to give the formula each state uses or flat rate?

For example, if I’m gonna be paying $5k for tags every year for motorhome, what’s the sense in looking at a tax friendly state...seems it all washes out in the end.

[davismills]

Originally Posted by FLJOE

Uh, no one mentioned Georgia because he/she wants a tax friendly state. My BIL moved from Florida to Georgia several years ago after retirement. He soon discovered his retirement was taxed in Georgia. In the next couple years they will be selling their home in Georgia and heading back to Florida.

I would respectfully disagree. If you're over 65, GA exempts 65K of retirement income from tax and does not tax SS money at all. A couple over 65 years of age could effectively exempt 130K of retirement income from pensions, IRA/401K distributions.

The state did have very high motorhome annual property/ad-Valorem taxes, but that has been rescinded for vehicles purchased or registered after 2012. It is now a flat 7 percent one time at initial registration. After that, it's a cheap yearly fee.

https://www.kiplinger.com/tool/retir...&state=Georgia

[rfsod48]

I enjoy saving money but it certainly isn’t the most important thing on choosing a place to live and enjoy my retirement. I would much rather live somewhere I enjoy and have the benefits I want rather than worry about saving a few thousand dollars.

[jarata]

we just switched from mass to sd the cost for the tags was alot more then what we paid in mass

[Boilervol]

Originally Posted by Bowl300

I can’t find info on how TN charges for their motorhome registration every year. Or other states for that matter...the sites I’ve looked at are not specific enough to give the formula each state uses or flat rate?

For example, if I’m gonna be paying $5k for tags every year for motorhome, what’s the sense in looking at a tax friendly state...seems it all washes out in the end.

I pay about $100 but I have a personalized smoky mountain plate. The Motorhome is treated just like a car in TN. You do pay a sales tax when you purchase or register the first time.

[Bowl300]

Originally Posted by rfsod48

I enjoy saving money but it certainly isn’t the most important thing on choosing a place to live and enjoy my retirement. I would much rather live somewhere I enjoy and have the benefits I want rather than worry about saving a few thousand dollars.

Thats what im trying to say... instead of worrying about living in “tax friendly states” only...go where you want, (within reason, not the most unfriendly staes) cause any other taxes, rv insurance, property insurance etc is igonna get you anyway

[Bowl300]

Originally Posted by Boilervol

I pay about $100 but I have a personalized smoky mountain plate. The Motorhome is treated just like a car in TN. You do pay a sales tax when you purchase or register the first time.

Boilervol, what do you mean on paying sales tax when registering first time? TN has high sales tax and Already paid like $25k when first bought new in CA, now MH is used...how would that work?

[Boilervol]

Originally Posted by Bowl300

Boilervol, what do you mean on paying sales tax when registering first time? TN has high sales tax and Already paid like $25k when first bought new in CA, now MH is used...how would that work?

Bowl300, I’m not sure, it may be exempt when you move into TN. It’s something I would check however.

[JBDISCOVERY]

FLORIDA.
48 years. Very happy. Send the summer up North.
Jimb

[ArkansasRomr]

Well said Ed,

As a former financial analyst, you may want to consider not only tax repercussions but cost of living as well. Also, the ‘where’ do you want to live to me is a huge deciding factor.

But one thing is for certain, California is tops when it comes to eating up your disposable income!

Romr

That being said, here is information regarding the tax side of your decision:

https://turbotax.intuit.com/tax-tips...axes/L6HPAVqSF

Hugh stated that Texas is the choice and that state is a good choice considering:
No state income tax
Below average cost of living index
Weather is temperate
Coastal/beach access
Centrally located in the US (arguably)
Low fuel costs

[spuds]

Originally Posted by Bowl300

Boilervol, what do you mean on paying sales tax when registering first time? TN has high sales tax and Already paid like $25k when first bought new in CA, now MH is used...how would that work?

Sales tax if this is the first registration of the vehicle. If it's already registered in another state then MH plates are $26.50 plus local fees/year for standard plates. https://www.tn.gov/revenue/title-and...istration.html Google has even more info

[Rollin101]

Originally Posted by Bowl300

Boilervol, what do you mean on paying sales tax when registering first time? TN has high sales tax and Already paid like $25k when first bought new in CA, now MH is used...how would that work?

It would be exempt in Tn since you already paid in Ca. I am registered in Tn and 2 vehicle license, including Mh, are free due to disabled vet otherwise registration and license are around $100 year depending on whether your county has a wheel tax. Tn has a 7% one time sales tax on the difference when you trade vehicles.
No vehicle inspection, no personal property tax, low cost of living, no state income taxes, low property tax and several other perks depending on age and veteran status.