Registering out of state to avoid taxes

[Hit_the_Rhod]

Originally Posted by wnytaxman

To all that believe that the use of a Montana LLC is tax evasion, you really need to think about what you are saying. Let me give you an example. Do you deduct the interest on your rig as a interest on a second home? If you do, don't you think it's tax evasion? Of course you don't because the law allows you to take that deduction and there is no question in your mind or that of your accountant that the deduction is legal.

It's a similar situation with a Montana LLC. Let's say, for example that the law in Florida is that a vehicle is a Florida domiciled vehicle if it is present in the state for 31 consecutive days. Every 29 days you take that rig and drive into Georgia and fill up with fuel and drive back. Do you think that is tax evasion? In case you don't know, it isn't tax evasion any more than taking the deduction for RV interest as a second home is tax evasion. You are only doing what the law allows.

Would I consider using a Montana LLC? I might, but I would make darn sure that I was able to comply with the laws of NYS and that I can document that compliance. It isn't rocket science nor is it a question of morality. If one is doing what the law allows and you don't like it then maybe you should be looking at getting the law changed rather than judging those who use the law to their advantage.

Wnytaxman,

Thanks so much for the insight from the perspective of ACTUAL KNOWLEDGE! In threads like this, I generally wait for you to chime in as your advice is generally right on the money (no pun intended) and ACCURATE!

I researched the Montana LLC to see if it would work for me. I elected to NOT use it because I didn't feel that I would be complying with the laws of the state I currently reside it (KY), but I agree that there are situations where it IS LEGAL, and IS WARRANTED. Mine just wasn't one of them.

For those of you who question the "morality" of licensing in another state even though it is perfectly legal in some instances I ask this:

Have you ever purchased a product on line because it was cheaper, and because you could AVOID PAYING SALES TAX? And if you did, did you report that on your state income tax (if you have a state income tax) where is asks you to list purchases made out of state which you DID NOT pay sales tax on? If you live in a state that asks that, and you did not report those purchases and did not pay the required by law sales tax on those purchases, than you are, by definition, a TAX CHEAT! Just saying!

Bottom line: If it is legal, and is legal for your circumstances, than DO IT! Those who do not AGREE with the law, are free to try and CHANGE the law as mentioned before, but don't judge those who are in compliance with the law just by accusing them of not paying their "fair share" . . . .yeah, don't get me started on THAT one . . . .

I posted the rather lengthy post on the reply from Bennett Law Firm because I hoped it would allow the OP to make an informed decision as to whether the Montana LLC would work in HIS SPECIFIC case, not because I thought it would work in everyone's case. Life is too short to be getting wrapped up on the small stuff . . . . and almost ALL of it is "small stuff" when you get right down to it.

[timjet]

As the original poster thanks to all who've shared their opinions, even those who will continue to think that I'm a potential tax cheat.
Special thanks to Hit_The_Road and wnytaxman who's accurate and not emotional responses were enlightening. Though off topic I had no idea CA had RV size limits on most of their roads. I may have to rethink my size criteria.

[Gordon Dewald]

Originally Posted by timjet

As the original poster thanks to all who've shared their opinions, even those who will continue to think that I'm a potential tax cheat.
Special thanks to Hit_The_Road and wnytaxman who's accurate and not emotional responses were enlightening. Though off topic I had no idea CA had RV size limits on most of their roads. I may have to rethink my size criteria.

On some of their roads, not most.
http://www.dot.ca.gov/hq/traffops/tr...45-bus-map.htm

[Mr_D]

Originally Posted by Gordon Dewald

On some of their roads, not most.
45' Bus & Motorhome Map

Some years ago I went "cross country" in our 40' DSDP to get from I-5 to 99. Didn't get stopped nor have any trouble due to the length. We have a friend in Fresno that we visit, luckily they're less than 1 mile from the freeway and have space inside their fence to stay for a week or so.

[timjet]

Originally Posted by Gordon Dewald

On some of their roads, not most.
45' Bus & Motorhome Map

Well the map is a little confusing. A very few roads are in red. Most major roads in green. All other roads are OK, even local city roads??

I was interpreting the map as indicating only those roads in green are allowed.

[CLIFFTALL]

How about we keep this thread on the original topic and start a new one for these questions on length.
Thanks.

[DMTTRANSPORT]

Maybe you can get one of these ones that think what your doing is wrong to pay for what they think is the right way to do this...show of hands????

[RMSmithJr]

If the states are really interested in promoting tax equity, they would be going after the seasonal campers.

[HarleyOutlaw]

Being retired and living in Maryland at the time, I looked into a Montana LLC. It would not work for me as long as I lived in Maryland.

My solution, changed residency to South Dakota, registered all of my vehicles there and then strolled across the border to Pennsylvania and am currently living full time in our RV in PA. My pension that I earned while in Illinois is now not state taxed and while I'm working in PA I am taxed only on the money earned in that state. All perfectly legal to do.

I see absolutely nothing wrong with what I did or what the OP wants to do as long as it works for him.

[moderator edit] The world is not black and white. Live in the gray area. LOL