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 ...
You can checkout anytime you like, but you can never leave.
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.
“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.
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.
You have to know that they are trying to come up with an exit tax that will be upheld by the courts.
Nothing like being a Democrat controlled $hithole
They should build a wall at the border. East Germany tried that in 1961 and it worked great!
“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.
Rush can tell you all about this.
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.
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.
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.
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.
After we finally flee, why in God's name would we ever go back?!
FWIW, all the folks we know who’ve escaped from NY have been conservatives.
Californians ... vote a state bankrupt, then move.
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