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RMD3819 · 05-22-2018, 06:53 PM

When we went full time we actually switched from FL-where we lived for decades-to SD. The tipping point was the 2% in sales tax on our new coach we saved by using SD.

We use Americas Mail Box and are very happy with them. Process was easy.

SD insurance is cheaper than FL.
FL registrations are cheaper than SD. In our case these cancelled each other out.

Americas-Mailbox Home - mail forwarding - Americas-Mailbox

weredoingit · 05-23-2018, 10:50 AM

Quote:

Originally Posted by saddlesore

I believe that the question is leaving his "high tax" state, "moving to a nomad friendly state" then living full time in the RV, without a Real estate home in said high tax state.
If you continue to maintain a S & B residence in say Cali. then you must pay all the taxes incurred there me thinks..

Outright ( or even inadvertent) Tax evasion is a serious charge..

Trust me when I say that "3 hots & a cot" with a shower twice a week ain't where you want to go...

So if we rent out our house in California, and go full time, We can't pick another state like South Dakota to register our vehicles?

grindstone01 · 05-23-2018, 11:02 AM

We had some rental property in Michigan and still were able to become Texas residents. I believe that CA requires you to have CA residency if you stayed in their state for more than 30 days. (not sure on specifics, you will have to google that). It was major consideration for us when we wanted to volunteer in CA for 3 months. We took the risk and nothing happened.

jbrv · 05-23-2018, 12:08 PM

Quote:

Originally Posted by weredoingit

So if we rent out our house in California, and go full time, We can't pick another state like South Dakota to register our vehicles?

Some states will have published guidelines with examples of what the state may use to determine if you really changed domiciles or are just trying to avoid taxes.

I recall reading for a state in the northeast (i think it was massachusetts ) that had some examples of things the state would consider when trying to decide if a person really left the state or is trying to game the system. Examples were where is your bank? Still a member of a local church or some other local orginization? spend more than 5 months in the state? own property? it even listed examples of what was ok and what is questionable.

Each state is different. I would look at not only what state I wanted to claim domicle in but also at rules in the current state to be sure you do not wake up some day in the future dealing with a tax bill you thought you had managed to hide from.

If i had a pension i earned working in a state i think I would feel like i should go ahead and pay the state tax to the state that was good enough for me to live and work and raise a family in. Of course most folks my age (50) dont have to worry about getting our pension taxed......rare to find a job with one outside of a union or state job.

WeatherTodd · 05-23-2018, 12:30 PM

Quote:

Originally Posted by saddlesore

...

Outright ( or even inadvertent) Tax evasion is a serious charge..

Trust me when I say that "3 hots & a cot" with a shower twice a week ain't where you want to go...

where do you come up with this? I know many folks that try to avoid paying taxes as part of their daily work load.

On top of which you are using some cheap scare tactic which will NEVER come to fruition.

You should become acquainted with legal terms like "domicile" and "residence".

WeatherTodd · 05-23-2018, 12:32 PM

Quote:

Originally Posted by weredoingit

So if we rent out our house in California, and go full time, We can't pick another state like South Dakota to register our vehicles?

Of course you can. Why wouldnt you?

Personally Id put the rental in some kinda LLC so it cant be tied to your vehicles.

Many states have minimum residency requirements. You may have to transfer your DL as well.

Bob Hyatt · 05-23-2018, 02:11 PM

It is probably more complex than many make it out to be. I live in Alabama. I am retired. Here, there is zero income tax on social security. There is zero income tax on a defined benefit pension (A plan that pays you a fixed amount for life regardless of how much you paid in). I retired from a University here, so my basic pension and SS is 100% tax exempt. Making it equal to Florida and others that have no income tax period. OTOH, if you do a 401(k)/403(b) type of IRA, they will tax that. But since that is the ONLY thing you have that is taxable, you will likely end up not paying tax on that income either, making everything tax free (state-wise). Of course, the IRS is not quite so generous.

saddlesore · 05-23-2018, 02:30 PM

Quote:

Originally Posted by WeatherTodd

where do you come up with this? I know many folks that try to avoid paying taxes as part of their daily work load.

On top of which you are using some cheap scare tactic which will NEVER come to fruition.

You should become acquainted with legal terms like "domicile" and "residence".

You are confusing legal/legitimate avoidance of taxes incurred vs overt or covert evasion of taxes owed...

your results may vary

twogypsies · 05-23-2018, 02:35 PM

Quote:

Originally Posted by weredoingit

So if we rent out our house in California, and go full time, We can't pick another state like South Dakota to register our vehicles?

You might want to read this: http://www.irv2.com/forums/f92/rever...ns-389615.html

Hit_the_Rhod · 05-23-2018, 02:36 PM

Quote:

Originally Posted by Mr_D

WA has no income tax, license tags cost me less than $175 for both the MH and CR-V. Insurance where I am is relatively cheap. The expense is the almost 10% tax on motor vehicles.
They have been trying to pass an income tax for years but one party has been able to hold them in check. But now the party of tax and spend has the Governor, and both House and Senate so we'll see what happens next session.

As a previous resident of WA state, I understood that taxing income was prohibited by the WA State Constitution. Also pretty sure that a change to the State Constitution cannot be enacted solely by the State Congress and/or Governor, or am I wrong?

All the news articles covering the recent "head tax" debacle in Seattle/king county were pretty consistent in mentioning that the State Constitution prohibits taxing income by local jurisdictions, as well as the state as a whole*.

* "State as a whole" in Washington State has really become just King County and Seattle, as they are apparently the only ones who matter anyway . . . .

wnytaxman · 05-23-2018, 02:55 PM

A couple of points may need to be clarified here. Owning real estate in any given state does not make you a resident of that state. Now, owning income property in a state may result in you having to file a non-resident state income tax return. Note that the key there is NON-resident return.

When we have encountered state residency audits we usually encountered a key element of simply being how much time did you spend in the state in question. Usually the cut-off is 183 days. What is counted as a day can be tricky. If I stop in a state at 11:59 PM and leave that state at 12:01 AM, then I may have just spent two days in the state in question.

Other factors that will have an impact are voting, professional and social organization memberships, driver’s licenses, family ties, etc. We had one residency audit where the client had kept a home in NYS while living in British Columbia. After working in BC for four years she returned to Western NY State. The State came after her because it said that because she never sold the house in NY and that she returned here that she never intended to leave NYS. We did eventually win that one, but it was very long fight.

wnytaxman · 05-23-2018, 02:59 PM

One other comment on here that needs to be clarified is it has been said that you can have “inadvertent” tax evasion. There is no such thing. By definition tax evasion is the INTENT to evade taxes. That is very difficult to prove and it requires the state to prove that the taxpayer INTENDED to not pay taxes that were due. On a civil tax situation, the burden of proof is on the taxpayer to prove that they reported all income and took only allowable expenses.

Considering all the factors, the decision of where to become a resident can be a very tricky one that may require a lot of research. One factor that has not been mentioned is estate taxes. Is the state you are looking at one that still has estate taxes? That can also be an important factor.

nothermark · 05-23-2018, 04:16 PM

Another factor to deal with is the state you are trying to avoid. I have heard from state tax folks that the routinely run credit card accounts as an example. Charge stuff enough times to show a pattern of living here and you can get a tax bill as a resident. I think it is safe to assume that other high tax states do the same thing. The income they collect is worth some effort. OTOH low tax states do not make enough to bother chasing folks. The point is to figure your tax exposure to see your risk level. If the state will not make much they won't bother. If they can get a significant chunk of Income, Personal Property, or Registration money then watch your residency.

aktraveler · 05-23-2018, 10:04 PM

Today we just registered our newest rig up here in Alaska. NO state sales tax, NO state income tax, and, because I'm over 65, $0.00 per year for the plates (registration). Hard to beat from a monetary standpoint, but who the heck wants to live in Alaska? I don't - that's why were gone in the winter.