Am I a resident?

I have been a California resident for many years. I've paid state income tax the whole time, and had various homes in California. I'm retired; my income comes entirely from investments, many of them are California tax-free muni bonds. I vote in California, and I have some relatives in California, but nobody very close by. A year ago, I built a vacation home in Arizona; I purchased and registered a car in Arizona (I have a car in California too, and my driver's license is from California). Over the last year, I've found I'm spending more time in Arizona and less time in California. This year, it looks like I'll be in Arizona just over 6 months, California about

5 months, and neither state the remainder. I like Arizona, and I'd like to be considered a resident of Arizona. Doing that would also have have some tax benefits for me. So, I'm looking into what it would take to be considered an Arizona resident. And more importantly, what it would take NOT to be considered a California resident anymore. If I take out a driver's license in Arizona, register to vote in Arizona, consider Arizona my main home, and continue to live in Arizona more than half of each year, am I an Arizona resident? Will California (properly) decide that I am still a California resident? Would it take selling my California home to renounce California residency? Does selling the CA tax-free bonds help? How does one STOP being a resident of California while still owning and occasionally occupying a home in California? If I take steps to show that my intent is to consider Arizona my main place of residence, how high is the risk that I'll wind up with both states considering me a resident or part-year resident? That's certainly not the goal. All help appreciated.

Ken

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Reply to
Ken Meyer
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The only way to be a part year resident is to move in or out of a given state. Whether you are a resident of a state can be a complex matter & has been the subject of much litigation. So, you should start by reading the instructions to the tax forms. It ususally indicates the criteria of being considered a resident. You should also take a look at the relevent court cases for your situation. ___________________________________

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Reply to
Benjamin Yazersky CPA

Keep in mind that California wants to keep collecting your tax money, so to them you are a resident. The best way to stop being a resident is to stay away. Even if you want to vacation in California, I recommend you move all your bank and investment accounts to Arizona (why not pick a state free of income and estate tax, while you are at it?), rent out you California house, and don't set foot in California for a couple of years. Then, after that, just visit briefly. This may be a bit of overkill, but then again, it might not.

Reply to
Gil Faver

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