Tax/residency advice

[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,

[jane032657]

My CPA husband says DO NOT TAKE ANY MONEY OUT UNTIL YOU BECOME A FLORIDA RESIDENT OTHERWISE YOU WILL OWE TAX TO THE STATE YOU LIVE IN. My husband just sold his CPA practice of 35 years in Seattle and everyone is in tears that he is leaving. His advice is solid, he has 1,000 clients panicking without him. I would listen!

[rjm1cc]

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,
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.

[bonrich]

I was told by a new Florida resident that the 6 months and one day rule was no longer being enforced because of the difficulty of tracking, and with the influx of new residents making it quite a formidable project. If this is true, then I guess the next question is how aggressive is the State you are "leaving" in checking residency status?

[hockyb]

My CPA husband says DO NOT TAKE ANY MONEY OUT UNTIL YOU BECOME A FLORIDA RESIDENT OTHERWISE YOU WILL OWE TAX TO THE STATE YOU LIVE IN. My husband just sold his CPA practice of 35 years in Seattle and everyone is in tears that he is leaving. His advice is solid, he has 1,000 clients panicking without him. I would listen!


I agree, if you can establish Florida residency before you take taxable monies from your account to purchase a home, of course you won't have to pay the state tax. This may not be convenient in your case, but this is good advice.

It cost me about $7000 in NY State Income Tax, but I felt that "now" was the right time to buy!

[Cantwaittoarrive]

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,

Talk to a CPA. You don't give enough information for anyone to give you advice. For example are you retired now? what's your age and e.t.c.

If you're still working you might be able to borrow from your retirement funds tax free to purchase a home. There are so many options that only someone like your CPA can give you advice that pertains to your situation

[CaliforniaGirl]

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,

PLEASE for your sake, make an appointment with a knowledgeable CPA either here or in your home state. A $200 consult is so much cheaper than paying thousands in income taxes (federal & state) that you could have avoided with proper advice. Advice from friends, relatives, co-workers, neighbors, etc is worth exactly what you pay for it.

If you are here (TV), I highly recommend Judith Dacey at J.D. Sumter & Associates in Baylee Plaza on 27/441, 1 mile north of Walmart. You can google her for her phone number. She's very, very sharp.

[rjm1cc]

I was told by a new Florida resident that the 6 months and one day rule was no longer being enforced because of the difficulty of tracking, and with the influx of new residents making it quite a formidable project. If this is true, then I guess the next question is how aggressive is the State you are "leaving" in checking residency status?The tax problem is not on the Fl side. You can live here one day and qualify as a resident. The problem is getting the state you left to agree you are not a resident of the old state and they can not tax you. I think the general rule of thum is the 6 months and one day. However you could be subject to being taxed as a part time resident in your home state the year you leave. Thus why you would want to talk to a CPA pratcing in your old state as opposed to a CPA in Fl. The problem is not Fl rules but the rules of the state you are leaving.

[msilagy]

There is NO rule saying you have to be a resident 6 months and 1 day!
As long as you do not rent out your home all year then you are good to go.

You need to register your car, get a Fla drivers license and voters card. That can all be done on Hwy 441 across from Walmart behind the McDonalds. One stop for all 3. Be prepared though the cost is steep. I paid $466 for my registration and license initially. However, you are then a resident.

You do however need to bring your car title (or paper from finance company)
your current drivers license, and birth certificate and an electric bill. If you are divorced and have a different name then on your birth certificate you need your divorce papers. Also a social security card (or a W2) will be accepted.

I just did this Feb 2013 so the info is current.

[Bogie Shooter]

I hope Mike got his answer 5 months ago.

[Bill-n-Brillo]

I hope Mike got his answer 5 months ago.

:shocked:

Bill :wave:

[laddan]

state residency is usually based on INTENT
you show intent to live and domicile in a state by
proof of living there and many otherfacts like homeowners tax exemption, car titles, driver lic, address of your financial accounts, best consult a good CPA for a couple hundred bucks they can help you make sure you get FL residency and maximize your tax situation.

[kodalittle]

No, the one I used is not very good about getting back to you when you leave multiple messages. They hide behind an answering service.


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,

[TrudyM]

As others have said it is the from state not FL. We have moved a lot and some states let you list the income derived during the time you lived there and others use a % system on total non salary income. (Ie the money you take out of your retirement funds) I agree get a CPA for this one time thing as it is more complicated than most years. At todays low mortgage rates I agree with the poster who said to run the numbers it may be cheaper to get a loan for a year or two, make sure it doesn't have a prepayment penalty.