Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
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Registration
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#17
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I just had the same situation last week as I moved here in November. I registered the car that was here in Florida and will leave the car garaged in Illinois on that state. I have spectate insurance policies for each car from each state. I could not register the Illinois car here even if I wanted to because they have to physically look and certify the mileage. Also, insurance here is almost double.
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#18
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Beware the IRS! If you establish residency in Florida prior to selling in Nevada you could end up paying a full capital gain tax on your Nevada residence. I believe IRS requires your home to be your primary residence at time of sale and for at least 2 of the last 5 years or your gain, if any, will be taxed.
So, if you are planning to establish residence in FL to gain the homestead exemption be very careful and get solid tax advice BEFORE you do it. My two cents. |
#19
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Residency
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#20
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Why???
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Identifying as Mr. Helpful |
#21
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Cars
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That is especially true in Florida. Have you seen the TV ads? |
#22
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IRS and sale of Primary Residence
The IRS grants exemptions on the gain from the sale of a "primary" residence if occupied the required number of years and you can prove it was your primary residence.
If you change residency, prior to selling your "primary" residence, your new address becomes your primary residence and you lose the exemption. Speak to a good tax advisor prior to making any such decision. |
#23
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PS: there are ways to avoid a challenge by the IRS regarding where your primary residence is located. But, most require that you are a registered voter, have a driver's license in the state of residence, have your cars registered there and prove you had no intention of changing residency while owning a second home in another location. However, the IRS will look to see where you spent your time. How can they do that? They check your credit cards of course and you need to counter that with the arguments listed above.
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#24
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There is a 5 year look-back.
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Identifying as Mr. Helpful |
#25
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If you have a new car with all the high tech gps and computer gadgetry in it, your whereabouts can be constantly tracked. That data can then be sold to third parties such as insurance companies to be used as a basis to deny a claim for misrepresentation of primary residency. They can also access how many miles you drive each year, how fast you drive, and if you are a hard breaker approaching a stop sign. All of this data can be used when underwriting to access a corresponding risk premium to your policy. Oh, and when the light goes on in your car indicating it needs an oil change, your cell phone will start lighting up with texts offering oil change specials. As we adapt to technology, we are all becoming nothing but living and breathing data points than can be sold to third parties. Watch out, I think I will keep my older Vehichles for as long as possible.
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#26
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We had the same situation...a home in FL and one in MA. We are both from MA and bought a second home in Fort Lauderdale in 1995...in 2008 I moved my business down there for tax purposes and became a FT Florida resident, although my wife traveled with me every time I came to Florida she elected to remain a resident of MA. We had two cars, the one we kept in FL we registered in FL and I registered to vote in FL. Wife wanted to keep her MA residency for Health Insurance reasons, keep the doctors she had and she was flying up frequently during the winter for elder care support. We were still 'snowbirds'...both of us could work remotely, but also had to travel for business. Back in the 90's you could keep your out of state driver's license and get a "Florida Only" license (no more). You can only have one Homestead that gives you a tax break. There is no tax deduction for homesteading in MA, so I was able to Homestead in FL in 2008. I believe the rule at the time was that if you had a Homestead in another state that reduced your real estate tax you could not homestead in FL unless you cancelled the other. For a few years the State of MA contested why I wasn't filing a joint state tax return with my wife and they wanted verification that I was actually a Floridian...it had nothing to do with how many days I lived in either state....a copy of my FL voting records, valid drivers license, phone bill and water bill was all they needed. We had the option of filing our Federal taxes jointly or married filing separately (which one year was a huge advantage). Car insurance is something that you need to shop around for. I found State Farm to be as expensive as MA was...I now use Triple A and they cut it in half. My wife became a Floridian in 2012, and we simplified our lives by selling our MA property in 2015.
My tax attorney told me not to worry about having an out of state license or out of state plates...the borders between all the states are open Hopes this helps |
#27
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Homestead you need to do here as well but you won’t see the benefit until 2021. The 25-% tax increase is buried in the millage rate. |
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#29
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use the phone book
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#30
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Closed Thread |
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