I plan to file a corp in a tax free state. Would it be better to buy a property in that state also?

Discussion in 'Taxes and Accounting' started by invortex, Aug 31, 2019.

  1. invortex


    I won't be living in the US for the next few years. So the home will be either rented or just kept empty.
    murray t turtle likes this.
  2. tommcginnis


    Every state charges taxes.

    A minimum/zero income tax state will have higher property and sales taxes.
    A minimum property tax state will have higher income and sales taxes.
    A minimum sales tax state..... you get the idea.

    To choose right now (and focusing on income taxes), you'd be buying property in a state likely to have a higher sales tax -- just in time for you to move there and help fill the state coffers with your soda and cereal purchases.

    It's a trade-off that is best made on a holistic basis, not a 1:1:1:.... basis. Weather, healthcare costs, proximity to family...

    Any of the public finance websites would be very helpful...
    Last edited: Aug 31, 2019
  3. tiddlywinks


  4. Yes. FYI, if you come from NY make sure you reside there for 186 days at minimum or they will want some tax money .Also return all license plates or they will put a hold ..... somehow.... with the local government on your driving status.
    murray t turtle likes this.
  5. %%
    LONG distance landlords tend not to work. MOST insurance companies don't allow for 30 days not occupied- so ask yours. BUT with RE trends going up mostly in US I would chance it+ besides its a long term goal for some to self insure.
    IF you keep it, makes sure to pay property taxes; so local gov does not sell it for back taxes
    tommcginnis likes this.
  6. wrbtrader


    It doesn't matter what state you select...

    You're crazy to buy a home, leave it empty and reside in another country.

    Rent it out or have a family member live in it instead of leaving it empty. Yet, even if you rent it out, you'll still want someone trusted to inspect the home once in awhile to make sure those you rent (if you go this route) aren't doing anything illegal that would make you liable if/when something goes wrong while you're living abroad.

    Seriously, research Google and read the stories...celebrities or people with money living abroad while their home in another country is occupied by a renter...the renter & home owner were liable for illegal activities in the home if the renter is the cause of the illegal activities....

    Many home owners have been sued in court especially if it involved a celebrity because they pay to settle the lawsuit quickly to keep it out of the news.

    Best to get a condo (maintenance taken care for you while you're gone) or rent a cheap apartment somewhere if you're seriously thinking about leaving it empty. Yet, if you go the cheap apartment route...find one that includes electricty, water, heating with the monthly rent.

    Invest money into remote security cameras. Get one with motion detection inside the condo/apartment to alert you via email and/or message to your cell phone.

    If you ignore the above advice and buy a home instead of renting...make sure you learn about that state's "squatter rights" just in case someone enters your home without your knowledge nor approval...they decide to live there in your absence.

    Squatters claiming homes happens in every state which is why they have laws and rights advocates protecting squatters in very difficult situation such as someone trying to evict a squatter.

    I own a home in another country...I have a close relative that lives in it and maintains it. I'll be stupid to leave it empty.

    Last edited: Sep 1, 2019
    tommcginnis likes this.