Residency and avoiding state income tax

Discussion in 'Taxes and Accounting' started by spread, Nov 11, 2011.

  1. spread

    spread

    Interesting idea, I think I'm not in a situation where this makes sense.

    My network footprint could certainly be a problem, but my thought is that a state would need a reason to investigate this. I've never lived in the state I've just "moved" to, and I can't think of a scenario in which this state would suspect that I lived within it.

    I do appreciate all of the opinions, I clearly have much to learn. I'll talk to a tax attorney. Reason for posting here is for the variety of opinions of people who may be or have been in a similar situation.
     
    #11     Nov 12, 2011
  2. GordonTheGekko

    GordonTheGekko Guest

    Re: network footprint
    This is very easily midigated by a proxy server. They're cheap and fast.


    Claiming residency in another state is legal and common, so I would suggest checking with your attorney (I assume you have one :p).

    Setting up an offshore corp is definitaly illegal, in the sense that it would be very easy to be prosecuted for (tax evasion). Take the state route, from what I spoke to about with a lawyer on the same subject, it isn't difficult and you can estentiallu spend as much as uou want in your 'real' state.
     
    #12     Nov 12, 2011
  3. GordonTheGekko

    GordonTheGekko Guest

    By the way, regardless of whether you're married or not, most states will consider you married and penalize you for not declaring so. It actually may be cheaper to get married tax wise.
     
    #13     Nov 12, 2011
  4. NJ does not recognize common law marriage if the relationship was formed in the state. They do however recognize out of state common law marriages if the couple moves into NJ from a previous common law state.
     
    #14     Nov 12, 2011