Florida Residency

I would like some advice on how we might legally establish Florida, as our state tax domicile.

We now own a house and live in Connecticut. My wife will soon retire, as I have. Next year we would like to avoid the CT Taxes and enjoy Florida winters. I am aware that one should change to Florida address: drivers license, bank, church afiliation, voting address, investment mailings etc.

It is our intent to continue to spend our summes at our CT house. I know that can be an issue. Can we spend 7 months in Florida, 5 months in Connecticut and not be obligated to pay CT income taxes?

Most appreciative, for your advice. I do not want to continue to pay CT TAXES!

-dave

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Add car registration to the list. I suggest you use a credit card for regular expenses. It would go a long way in an audit to show that you were physically where you claimed to be.

Reply to
JoeTaxpayer

The best article I am aware of on changing your domicile to Florida is by Patrick Lannon of White Case LLP. The link is below. The article will tell you all the things you need to think about when changing domicile especially when you continue to have a permanent place of abode in the state that currently treats you as being domiciled. You should read the whole paper (5 pages). However, there is a detail list of what to do in both states on pages 4 - 5.

Also note that CT law says you are a resident if domiciled in CT or you maintain a permanent place of abode in CT and spend more than 183 days in CT.

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Reply to
Alan

Since FL doesn't have an income tax, the main issue, as I see it, is is not to be classified as a CT resident. The following if from the "Allstate QuickFinder Handbook" (sorry about the formatting).

Residents are defined by either of the following. ? Connecticut is the individual?s domicile?or permanent legal residence?for the entire taxable year, or ? The individual maintained a permanent place of abode in Con- necticut and spent a total of more than 183 days in Connecticut during the taxable year, and is not a part-year resident. Exception: Individuals are treated as nonresidents if they meet all three conditions in either Group A or Group B. Group A:

1) The taxpayer did not maintain a permanent place of abode in Connecticut for the entire taxable year, 2) The taxpayer maintained a permanent place of abode outside of Connecticut for the entire taxable year and 3) The taxpayer did not spend more than 30 days in the aggre- gate in Connecticut during the taxable year. Group B: 1) The taxpayer was in a foreign country for at least 450 days during any period of 548 consecutive days, 2) During the 548-day period, the taxpayer did not spend more than 90 days in Connecticut and did not maintain a permanent place of abode in Connecticut at which a spouse (unless legally separated) or minor children spent more than 90 days and 3) During the nonresident portion of the taxable year in which the 548-day period begins, and during the nonresident portion of the taxable year in which the 548-day period ends, the taxpayer was not present in Connecticut for more than 90 days prorated by the ratio of number of days in the nonresident portion of the year to 548 days

Part-year residents are individuals who changed permanent legal residence by moving into or out of Connecticut during the taxable year. Part-year residents may not elect to be treated as residents.

Nonresidents are all individuals who are not residents and are not part-year residents (including individuals who are treated as nonresidents).

Reply to
SD

When I finally leave California, I will make it a point not to set foot in Calif again for three years. They will be scrutinizing right off the bat, and to say I have not returned for any reason would be very helpful. After they have seen the light, I may return for vacations/visit friends and family, etc.

Of course, I would also do all the other things you are supposed to do: find a new doctor and dentist, open new bank accounts, etc.

Reply to
Pico Rico

It might be a good idea to dispose of your house in CT. This means that when you live in CT you will rent a vacation home. It is not necessary to do this but may help in case of an audit.

Also note that if you rent your CT home, you must still pay CT taxes on your rental income (that is rent received minus expenses). If you later sell your CT house and have capital gains, you have to pay CT tax on that. In case you pay tax to another state as well on this income, you get a credit in one state for tax paid to another state, but FL does noth have a personal income tax.

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remove ps

Thanks, for ALL of the informative replies. MOST appreciated !! Indeed our tax goal is to NOT owe any CT income taxes. We would prefer to return to our CT house, for the summer, vs Florida. We will retain our CT house.

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