no tax states

Discussion in 'Taxes and Accounting' started by msushi, Feb 25, 2011.

  1. msushi


    does anyone have any experience moving to a no income tax state such as florida, nevada or washington?

    how many days does someone generally need to be in the state for it to count as your state of residency?

    can you trade while visiting in another state and not be taxed the income tax of the respective state you are in?
  2. cstfx


    More than half of the year
  3. msushi


    and you wont need to pay state taxes in the state you are visiting as long as you are living in your tax free state for 180+ days correct?
  4. Careful... NY just passed some legislation that if you own a vacation home you are taxed as a resident. When the states are desperate for cash they will be out in force to ding everyone.
  5. rwk


    Most states that have an income tax collect that tax on income earned in their state regardless of residency. That could be as brief as one day (in the case of pro athletes and other high-income earners).
  6. msushi


    what about for trading profits? would someone get taxed the prevailing state income tax rate even if they are only visiting for 1-2 weeks at a time?
  7. rwk


    If you're just visiting, I don't know how the state tax collector would know you are there. If you rent an office, etc, that's different.
  8. msushi


    exactly what I was thinking. thanks for your help guys
  9. Handle123


    I would think if you got your driving license and tags in tax-free state and fill out voters registration would be enough. I don't know the legalities of using a Postal Annex like UPS that has their own P.O. boxes but you would have a street address. I live in Texas which is another income tax free state.
  10. When I became a Florida resident about year 2004 it took two years to become a resident. One set of papers - the declaration of residency, I think it's called - has to be filed during January to March. Another document has to be filed a year later. I don't know what the procedure is now.

    Strictly speaking, Florida is not a no tax state. There is a property tax.
    #10     Feb 26, 2011