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New York, California get 'aggressive' when residents try to flee high taxes
Fox Business News ^ | 5/15/2019 | Brittany De Lea

Posted on 05/16/2019 1:08:03 PM PDT by Beave Meister

As an increasing number of residents are looking to leave high-tax Opens a New Window. states, such as California and New York, some of these state and local governments Opens a New Window. are not making the process easy.

The Tax Cuts and Jobs Act introduced a number of reforms, including a $10,000 cap on state and local tax deductions, which have caused Americans to look into establishing legal primary residences in states where they can limit their liabilities.

But some states give taxpayers a hard time when they are trying to change their domicile – thereby establishing their permanent residency elsewhere.

“California … they don’t particularly like when people that were large taxpayers … leave,” Marc Minker, lead managing director at accounting provider and consulting firm CBIZ MHM, told FOX Business. “The state becomes very aggressive with respect to making you prove that you essentially changed your domicile.”

Changing a domicile requires an individual to physically move with the intent to stay either permanently or indefinitely. The state of domicile determines your income, estate and other taxes.

Even when you change your domicile, that is not always enough, Minker added. If you own a property in the old state, you must be able to prove that you resided in the new domicile for more than 183 days out of the year.

In addition to California, Minker said New York is “equally aggressive,” as are New Jersey, Connecticut and Ohio, among others.

Lance Christensen, a partner at accounting firm Margolin Winer & Evens, agreed that New York State and New York City are aggressive when it comes to allowing taxpayers to leave. He said individuals must be ready to “withstand New York State and New York City challenges.”

(Excerpt) Read more at foxbusiness.com ...


TOPICS: Chit/Chat
KEYWORDS: ca; california; connecticut; conservatives; democrats; domicile; fleeing; jobsact; liberals; newjersey; newyork; ny; ohio; progressives; salt; taxcuts; taxes
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Illinois can't be far behind...
1 posted on 05/16/2019 1:08:03 PM PDT by Beave Meister
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To: Beave Meister

You can checkout anytime you like, but you can never leave.


2 posted on 05/16/2019 1:15:52 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: Beave Meister

There’s little they can do if you sell your house, leave, and never return. This mostly involves people who try to fake their residency.


3 posted on 05/16/2019 1:16:21 PM PDT by proxy_user
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To: Beave Meister

“you must be able to prove that you resided in the new domicile for more than 183 days out of the year.”

Leave before June.


4 posted on 05/16/2019 1:17:33 PM PDT by rightwingcrazy (;-)
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To: proxy_user

Ahhh, but if you did that in 2005 and then inherited rental property in CA from a relative that passed away, guess what you get to do?

File a Form 540NR with f———g Franchise Tax Board every year, to get back MOST of the money they tell the General Partner to withhold from your distribution...

I loved growing up in CA, but I was 10 years late for the door when I left.


5 posted on 05/16/2019 1:22:04 PM PDT by L,TOWM (An upraised middle finger is my virtue signal.)
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To: proxy_user

You have to know that they are trying to come up with an exit tax that will be upheld by the courts.


6 posted on 05/16/2019 1:23:11 PM PDT by Farmer Dean (168 grains of instant conflict resolution)
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To: Beave Meister

Nothing like being a Democrat controlled $hithole


7 posted on 05/16/2019 1:25:34 PM PDT by okie 54
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To: Beave Meister

They should build a wall at the border. East Germany tried that in 1961 and it worked great!


8 posted on 05/16/2019 1:26:01 PM PDT by SunTzuWu
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To: proxy_user

“There’s little they can do if you sell your house, leave, and never return. This mostly involves people who try to fake their residency.”

This could leave the door open to a lot of Californians and Oregonians to play this game with the state of Washington which has zero income tax.

Here in tax crazy Californicator land, we see a lot of locals driving vehicles with Washington Tags. Most of them are retired or have their own businesses that can be run out of a home office in any state.


9 posted on 05/16/2019 1:28:20 PM PDT by Grampa Dave ( You can't normalize the type of behavior the left is trying to normalize, when, it isn't normal!)
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To: Beave Meister

Rush can tell you all about this.


10 posted on 05/16/2019 1:28:37 PM PDT by MileHi (Liberalism is an ideology of parasites, hypocrites, grievance mongers, victims, and control freaks.)
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To: Beave Meister

Rush Limbaugh has talked about this at length.
New York State continued to harass him for a decade or so after he had moved to Florida.


11 posted on 05/16/2019 1:30:30 PM PDT by Buckeye McFrog
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To: Beave Meister
New York looking to domicile in Florida as a consequence of the new tax law

I do wish they would go somewhere other than Florida. They bring their whole worldview with them with no idea at all of how that the effects of that worldview is what they are fleeing.

12 posted on 05/16/2019 1:31:00 PM PDT by arthurus (x)
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To: Beave Meister
We're certainly not big tax payers so we might not be missed but we're considering Florida for 183+ days a year and Massachusetts for less than 183 days (family's all here).It'll be interesting to see how vigorously Massachusetts hounds us...if they hound us at all.
13 posted on 05/16/2019 1:34:22 PM PDT by Gay State Conservative (Bill Barr:The Bill Belichick of Attorneys General)
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To: Beave Meister

In other words, as long as taxpayers from responsible states were paying the bill, they ate off others tables. These are not the kind of people i want for neighbors.


14 posted on 05/16/2019 1:34:24 PM PDT by momincombatboots (Do you know anyone who isn’t a socialist after 65? Freedom exchanged for cash and control.)
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To: Beave Meister

When I left New Jersey, Corzine pulled this crap on me. I had a business which I shut down a year prior to moving to Texas and I was fined by the state for not reporting my business.

I fought them, even showing documents that the business was shut down in a prior tax year and I owed nothing in back taxes. They hit me up for $8,000 in fines. My attorney filed a harassment suit against the state and demanded evidence that backed up their fines.

Never heard from them again.


15 posted on 05/16/2019 1:34:58 PM PDT by EQAndyBuzz (Only a Replacement Wall? Ann Coulter is deeply saddened)
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To: Beave Meister
Changing a domicile requires an individual to physically move with the intent to stay either permanently or indefinitely.

After we finally flee, why in God's name would we ever go back?!

16 posted on 05/16/2019 1:35:00 PM PDT by mewzilla (Break out the mustard seeds.)
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To: proxy_user
There’s little they can do if you sell your house, leave, and never return.

Oh, I'll sell my house and leave within a few years. But I'll be back as a tourist - California still has some of the best weather, scenery and people in the world - the toxic liberal enclaves mostly infest the coast.
17 posted on 05/16/2019 1:35:08 PM PDT by AnotherUnixGeek
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To: momincombatboots

FWIW, all the folks we know who’ve escaped from NY have been conservatives.


18 posted on 05/16/2019 1:36:11 PM PDT by mewzilla (Break out the mustard seeds.)
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To: mewzilla
Another hate crime, based on intent.
19 posted on 05/16/2019 1:36:11 PM PDT by sparklite2 (Don't mind me. I'm just a contrarian.)
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To: dragnet2

Californians ... vote a state bankrupt, then move.


20 posted on 05/16/2019 1:37:19 PM PDT by sparklite2 (Don't mind me. I'm just a contrarian.)
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