Announcement

Collapse
No announcement yet.

Retirement planning and taxes

Collapse
X
Collapse
First Prev Next Last
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Retirement planning and taxes

    How do states determine/confirm residency for taxation purposes during retirement? What's to prevent you from living the life at the beach in California while maintaining a home in Texas?

  • #2
    It kinda comes down to where do you really live. Where do you spend most of your time. If you have kids where do they go to school. Church membership. Voting. Registration of cars. Etc. What can you prove and defend in the event of an audit

    There are lots of resources on the internet to help learn about this.

    Here’s a short article.

    https://www.thetaxadviser.com/newsletters/2017/may/state-tax-issues-domicile.html

    Comment


    • #3




      How do states determine/confirm residency for taxation purposes during retirement? What’s to prevent you from living the life at the beach in California while maintaining a home in Texas?
      Click to expand...


      Some states are more...let’s say, intrusive, than others. NY comes to mind (as usual). @jacoavlu mentioned voting registration, church and other organizational membership, auto registration. These are attributes that would be reviewed in the event of an audit. For all practical purposes, you need to be physically present in the state of residency for 1/2 year + 1 day to prove residency although these other factors will serve to bolster your case. If that were not the case, I would not prepare and sign a return reporting you as a resident of that state but I don’t ask the other questions, not my business except to advise a client. Not too unusual to move and forget to change your auto registration in the first year, for example, but it could matter in event of audit.
      Financial planning, investment management and CPA services for medical and high-income professionals | 270-247-6087

      Comment


      • #4
        How would you even end up on the radar of a new york tax auditor for example if you dont actually derive any income from there during retirement? No 1099, no w2s.

        Comment


        • #5
          Property ownership, auto registration, voter registration, and a bloodthirsty NY government that is now not seeing a nice revenue stream to support their overspending.

          Comment


          • #6
            One man's saga trying to prove he doesn't live in NYC (although still in NYS): https://www.newyorker.com/magazine/2012/03/19/tax-me-if-you-can

            Comment


            • #7
              “How do states determine/confirm residency for taxation purposes during retirement? “
              Taxpayer responsibility to “prove” where you were.

              “What’s to prevent you from living the life at the beach in California while maintaining a home in Texas?”
              Absolutely nothing!

              If your question compliance,
              https://www.ftb.ca.gov/individuals/fileRtn/index.shtml

              If your question is criminal defense, quietly seek legal advice at the beach!

              If you are convicted of tax evasion in California under Revenue and Taxation Code Section 19706, you face severe penalties including jail time and hefty fines. A conviction is punishable by up to one year in county jail or state prison. You could also be ordered to pay a fine of up to $20,000.

              I do believe $20,000 is very reasonable for the “all inclusive “ accommodations. Unfortunately, you might be considered a resident as well.

              Comment


              • #8


                A conviction is punishable by up to one year in county jail or state prison.
                Click to expand...


                Have we found the FIRE solution to healthcare coverage?   :lol:

                Comment


                • #9
                  Thanks for sharing the New Yorker link, I enjoyed reading that

                  Comment

                  Working...
                  X