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CHANGING YOUR RESIDENCY
Why should we care about where you live or where you want to move? The importance of residency status has tax implications depending on where you live.
1) 17 States still impose an estate or inheritance tax
2) All but 8 States impose a state level tax on all retirement income
3) New York and California have the highest Estate and State income taxes
There are two tests for Residency
1) The Domicile Test
2) The Statutory Residency Test
The Domicile Test is typically a “leave and land” test. Looking for a lifestyle change.
Examples are the following:
1) Typical Snowbird
2) Retirement
3) Upsizing and downsizing
4) Health issues move
5) Burden of proof lies in the party asserting the change
Five primary domicile factors are:
1) Home
2) Business
3) Time
4) Family
5) Near and Dear
Statutory Residency-The general concept is your home is somewhere else, but you are here enough to be taxed as a resident. Two major tests:
1) 183 days AND
2) A permanent place of abode