Residency issue

Discussion in 'Taxes and Accounting' started by SoCalOptionsWriter, Oct 30, 2022.

  1. Ok, I presently live in California, but I plan on spending six months of the year in Vancouver, B.C. Is there a way I can parlay this into somehow not being a California resident? Spend a couple weeks to and from Vancouver in Seattle? Get rid of the CA license, etc. File taxes with a Canadian address and a six month visa? Do I need to have a state residency if I live out of the country for six months?
     
  2. ph1l

    ph1l

    It looks subjective and not that easy.
    https://www.stateandlocaltax.com/california/what-makes-a-california-resident/
    https://www.ftb.ca.gov/forms/2020/2020-1031-publication.pdf
     
    Last edited: Oct 30, 2022
  3. ETJ

    ETJ

    You'll need to be registered in any state you do business. Residency is much more of a tax issue - FINRA and the SEC rules are very dependent on what role/products you become involved in.
    If you're not registered in a state,even if it's a tiny portion of your business, it can be surprisingly problematic.
     
  4. tiddlywinks

    tiddlywinks

    Stratter likes this.
  5. VicBee

    VicBee

    As long as your main residence is in Vancouver and you're out of California for more than 180 days you should be fine. If you have property in California, you need to ensure it cannot be construed as your permanent home. Rent it, Airbnb it during the months you're in Canada. Forward your mail, show utilities use variation when you are/are not there.
     
  6. mervyn

    mervyn

    Yes you can file partial returns in US as overseas American, I think the first $96k income is tax deductible. But I am pretty sure you need a Canadian work permit to even start working there and pay Canadian tax, or any foreign country in this matter.
     
  7. But what about self-employed traders?
     
  8. mervyn

    mervyn

    Trader implies full time work, taxman/woman would like to collect, can't have the cake and eat it too.
     
  9. VicBee

    VicBee

    You're either a self employed trader in California or in Canada, but you can't avoid paying taxes here by declaring you're living there and vice versa.
     
  10. TheDawn

    TheDawn

    If you want to save taxes, you should establish tax residency in Puerto Rico or Singapore, not Canada. LOL Last I heard, taxes in Canada is a lot higher than in America. As a trader, you pay 0 taxes if you can establish legal residency in Puerto Rico or Singapore, as far as I know.
     
    #10     Oct 31, 2022