Thread: residency
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Old 03-27-2019, 03:25 PM   #12
davemitchell59
Montana Fan
 
Join Date: Feb 2019
Location: Tupelo
Posts: 101
M.O.C. #23524
My boss is attempting to establish residency in SD and going full-time in a motorhome after selling his home in MN. I think it's a lot easier if you divest of all your real estate property.


Like Fatcatzzz said, talk to a good tax attorney. I've read stories and talked to attorneys about how MN has chased down people who are still tied to MN to collect income taxes. Horror stories like using phone call records, utility bills, insurance claims, healthcare, and other expenditures in CA can prove that you're still tied to CA. Having a home there and spending 1-2 months there may require you to file in both SD and CA and, at a minimum, pay CA income taxes on 1/12th to 1/6th of your income for the 1-2 months you spend there. Like MN, I assume CA will make every effort they can to maximize their tax revenue.


Another thought not previously mentioned and please know that I'm not an attorney, but you might check into putting the house in your kids/grandkids name and gift them the money for taxes and utilities. Of course that might open up a whole new tax consequence of gifting them too much. Don't pay the bills yourself as that ties you to CA. Of course, that is a whole new level of trust that you'll have to have with your kids. ;-)
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