If the stock capital gain (short term) is the only income you have, where would you live if you can make more than $200000 a year? I live and work in New York City currently, and decide to quit my job to become a day trader to trade on my own money, I like NYC a lot, but I need to pay new york state tax and new york city tax, if I move to the tax-free states, like Texas, Florida, ect, that may save me some tax. What would you choose? If I have two living places, a small apartment in Texas and a big house in NYC, and set Texas as my primary resident address(even though I may spend more time in NYC, since I like this city a lot), in this case, do I need to pay New York State tax and New York City tax? Thanks.
I have a similar question...that is. What would be the best thing to do / where should I open an account if i want to trade the US markets, but live in my home country in Poland (Europe). Should I be joining a prop firm and go remote ? OR just have a retail account ? How would I be taxed ? 20% tax here in Poland.... Any info would help me out alot..thanks. I currentl live in nYC.
You could rent out a very cheap apartment somewhere in another state, get a driver's license and never use the place. Then use that state as your permanent address. Of course, thats probably illegal and you might get caught if anyone found out. I guess it would be tax evasion, but I dont know. You want to always keep these questionable things to yourself. The answer to your question is that you live in a place which would best keep you focused, improve your decision making and promote your overall mental health. The disadvantage of NYC, in my opinion, is the four seasons. While its not as cold as Maine or as hot as Arizona, there are still four changing seasons. There is also a lot of drinking, noise and other distractions around the city that could take away from your ability to make clear decisions. You will see many funds and traders located in CT or FL because those locations enhance their decision making. Parts of CT are much more laid back then NYC. Southern Florida takes away the environmental factor where you dont have to worry so much about getting sick or having to deal with the 4 seasons. You are more focused in such an area. However, places like FL or CT might detract from some people's focus and not for everyone. The best area for you would be the one which most enhances you as an individual, allows you to focus on the task at hand and contributes to your mental health. If you move to an area that detracts from your thinking then you will lose far more then the taxes will benefit. I see a place such as Alaska taking away from my mental health, but others might feel it enhances them. Its up to you and your individual preferences.
I'm exiting Southern California and going to Santa Barbara for several reasons but what you mention there might be the biggest.
Wyoming has no state income tax, but if you are into hustle, bustle, and people it's probably not the place for you. A ton of neat nature and aesthetically pleasing places.
not far away is Washington State ... also no state income tax, tons of beautiful scenery, Seattle and other metropolitan areas, and good education (if you have a family).
I am considering Santa Cruz or Monterey Areas in Northern California. Still doing my research... http://www.elitetrader.com/vb/showthread.php?s=&threadid=175679
The best way to evaluate a location is to go and stay there in a hotel over the weekend. Another way is to stay there in one of those temporary stay places for a month. Thats what I would do before carting all my stuff hundreds of miles. I would evaluate the area on all levels. I stayed in Santa Cruz for 3 months and I didnt like it. I liked Mountain View better. There was that big road that seperated Santa Cruz from the San Francisco area if you know what I mean. You had to drive back and forth all the time if you wanted the experience of the San Fran area. It depends upon you and so I would evaluate it in a temporary stay situation first before loading the moving truck.
A LITTLE KNOWLEDGE IS A DANGEROUS THING..............I KNOW FIRSTHAND THAT NEW YORK is very aggressive trying to establish a resident domicile for anyone who has a decent amount of income available to be taxed..............SPEAK TO SOMEONE WHO ACTUALLY DOES NYS TAXES!!!!!!!!!!!!!!!!!
Unfortunately,you won't be able to make $200,000/year from trading for much longer. Trading for all is trading for none.