Quote:
Originally Posted by mikel33
Hi,
My wife and I hope to be moving to TV in 2nd quarter of 2013. We are in need of some serious tax advice as we consider moving retirement funds to purchase our home. We also are curious about the process by which one becomes a Florida resident in the hope of avoiding having to pay state income tax to our present home state. Does anyone have a CPA or tax specialist in the area that they would recommend?
Thanks,
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You should find that withdrawing money from your IRA/401k will increase your taxable income. Since the tax rates increase as your withdrawals increase you should take some money out now and some next year. Depending on your age you could pay a 10% penalty.
You will probably be a part year resident of your home state in 2013 and owe no taxes in 2014. To answer the above two questions get a CPA in your home state.
Note, look at a mortgage since rates are low and you may save a lot on taxes by not taking all the money out now.
To become a FL resident is easy. One way is to register to vote. As a general statement you have to live in Fl 6 months and a day to avoid being a resident in your home state in any year. Change you auto registration to Fl, mailing address, US tax return address etc.
The Fl county real estate tax office can tell you how to qualify for the homestead exemption. I think you will qualify in 2014.