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Domicile analysis


Kiltedpig

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I don't know anyone fulltiming out of Georgia, does it have anything to recommend it over Texas, Florida or South Dakota?

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GA used to have what was for many years called a "birthday tax" and was an ad valorem tax on the value of your vehicle every year at your tag renewal (birthday). Private sales weren't taxed from a sales point perspective, but if you bought from a dealership, you were taxed a sales tax and then an ad valorem tax each year going forward. Some years back, they phased out the Ad valorem tax and instituded a one time "Title Tax" based on the value of the vehicle (their say on the value) and this affects any vehicles you purchase from a dealer or private seller. This one time Title Tax also affects any vehicle you register in the state of GA. If you are moving from out of state to GA, you are required to pay this title tax on all your vehicle(s) you register when you move to GA. It can be quite expensive for that initial registration which I think now is 7.5%. Now once you have paid it, then going forward it's just a basic tag renewal which is pretty cheap for cars, probably a bit more for RV's.

 

I guess it would need to be weighed against an anual registration tax you are paying now and when that break even point would be. I know for us, the break even point was about 7 years compared to the anual ad valorem tax. We had the option to "opt in" when they started this. If you were going to own the vehicle longer than 7 years, it made sense to opt in, if not, it didn't. I still have some vehicles I'm still paying the old ad valorem tax every year and others that we bought after March 1st, 2013 that we paid the title tax on and now only pay basic tag fee's going forward.

 

One more thing, GA does require annual emission testing on gas vehicles if you live in what is considered a "metro county of Atlanta". I'm in Coweta which is on the very south west part of this and gas vehicles do require emission testing each year. If you are outside the metro counties of atlanta, no emission or vehicle inspections. Diesel vehicles have no inspection or emission testing in GA at all. I would imagine large trucks/RV's are probably exempt?

 

TAVT (Title Ad Valorem Tax) - https://onlinemvd.dor.ga.gov/tap/faqs.aspx

TAVT Calculator - https://onlinemvd.dor.ga.gov/tap/welcome.aspx

Dan (Class of 2017) - 2012 Ram 3500 & 2005 Alpenlite Valhalla 29RK
Contact me at rvsolarconsulting.com or Two Wheel Ramblin

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You really want to wait until you are 59 1/2 years old before drawing any of that 401 money.

Otherwise their is a 10% penalty on top of the regular taxes due for any withdraw.

There is no penalty for early withdrawal from 401k and IRAs if you are disabled

CC, Paul, & Duckie

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I'm not sure but Registration looks to be under $100.

Our truck plates are due next month for $71 and the SUV is just over $50. Motorhomes are registered by weight here in TX and ours cost $130/year.

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I just want to reiterate what others are saying...take your time and look very close at all the variables before you pick a state. When we went full-time I jumped at SD because my son and granddaughter lived there. I discovered that personal legal issues involving some land could really hurt us if we moved from OR so I had to spend a lot of time undoing what I had already done. Nothing negative about SD. I was just so anxious to be full-time and get all our stuff moved I didn't take the time to discuss it with our tax preparer and attorney.

Could you expand? Did you own land in OR? We don't own any land at all. Already sold.

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As far as buying property, its really not necessary as long as you make a clean & complete break from all your Ca ties. Many of us escaped the grasp of the Ca FTB without issue when we transitioned to fulltime Rv'er.

We too, will be leaving CA. Sold our house, but will still have a storage unit, simply because we don't want to move it at this point. What is Ca FTB?

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Jim & Ginger/Nomad Hikers

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Retirement 12/2016

Full-time 04/2017

VanLeigh Vilano/Ford F350

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Facebook page - https://www.facebook.com/search/top/?q=trailer2trail

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You really want to wait until you are 59 1/2 years old before drawing any of that 401 money.

Otherwise their is a 10% penalty on top of the regular taxes due for any withdraw.

This is not true! You can start drawing before 59 1/2 but has to be an annual equal amount until 59 1/2 and can not be stopped until 59 1/2. I did this for 13 years and stopped the withdraws at 59 1/2. Have not yet started the withdraw back up but will have to when I reach 70 which is not too far off now. You will have to include this annual money in your tax filings and pay normal income tax. I did this to even out the amount as there was going to be too large disbursements at 70 creating unreasonable income tax payments. This allowed me to reduce taxes LEGALLY! People are not aware if you carry too large amount into retirement you can increase your tax load. Once I drew down the amount in my accounts, I stopped at 59 1/2 per guidelines, you can continue but the amount may be changed. Must add I rolled my 401 & IRAs into a self directed IRA as most money managers don't wish to do this as they don't make as much money over your life with them.

 

rocmoc n AZ

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We too, will be leaving CA. Sold our house, but will still have a storage unit, simply because we don't want to move it at this point. What is Ca FTB?

Ca Franchise Tax Board they collect the income tax and any other taxes they want

Tom & Michele

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I just came across an article that has some interesting information about changing domiciles from California to other states, which might be of some value in this discussion. Its more generally about the exodus of Californians due to the extension of the 13.3% state income tax bracket for CA citizens who are high income earners.

 

Quote -

 

California’s tough Franchise Tax Board (FTB) polices the line between residents and non-residents, and does so rigorously. Like other high tax states, California is likely to probe how and when you stopped being a resident. For that reason, even if you think your facts are not controversial, be careful. A California resident is anyone in the state for other than a temporary or transitory purpose. It also includes anyone domiciled in California who is outside the state for a temporary or transitory purpose. The burden is on you to show that you are not a Californian.

 

If you’re in California for more than 9 months, you are presumed to be a resident. Yet if your job requires you to be outside the state, it usually takes 18 months to be presumed no longer a resident. Your domicile is your true, fixed permanent home, the place where you intend to return even when you’re gone. Many innocent facts might not look to be innocent to California’s tax agency.

 

Unquote

 

Full article here - http://www.forbes.com/sites/robertwood/2016/11/21/as-trump-tax-cuts-emerge-high-13-3-california-tax-spells-exodus/#35a459b627f3

 

Don

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We too, will be leaving CA. Sold our house, but will still have a storage unit, simply because we don't want to move it at this point. What is Ca FTB?

 

You might want to get that storage unit in Arizona instead. California has a reputation for being the hardest state to leave. When we bought an RV in 2010 in Bakersfield without paying CA taxes on it we couldn't even drive through the state for a period of time without them claiming we owed them sales tax even though we had NEVER lived in California. Plus, the dealer had to hire someone to drive our new RV across the state line into Arizona for us to take delivery as we couldn't even take delivery of the rig in California without paying the tax. And the paperwork we signed in Arizona saying we took delivery out of state had to be notarized. Do not fudge anything when it comes to leaving California! I wouldn't even go back the first year for any of the year end holidays as I can see them using that as evidence that you still have ties there. Instead I would get and keep receipts for every place I went for at least the first six months after leaving--camping, food, fuel, etc.

 

Linda Sand

Blog: http://sandcastle.sandsys.org/

Former Rigs: Liesure Travel van, Winnebago View 24H, Winnebago Journey 34Y, Sportsmobile Sprinter conversion van

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Keep in mind the bet you are placing if you decide to skimp on the details when leaving California or other high tax states. It is not just the back taxes you will be required to pay if they decide against you but things like fees, licenses, interest, penalties and anything else they can think of to stick on your tab in addition to the taxes. Depending on the situation you might have legal fees as well.

 

An Arizona residence issue bit me and if I hadn't won the decision then the cost, over and above the back taxes, would have been very painful.

 

Bottom line, don't play residence games, do it or don't do it.

First rule of computer consulting:

Sell a customer a Linux computer and you'll eat for a day.

Sell a customer a Windows computer and you'll eat for a lifetime.

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We moved from California 11 years ago to retire early and be near my Father who had retired in Missouri. 3 months later he passed away. I tried to go back to work in Missouri after being there only 10 months but the pay here was very low. I went back to work in California and did so for 7 years with my family still living in Missouri. I had to pay California State income tax as well as Missouri State Income Tax. And of course Federal income Tax. I became disabled after a work injury and the subsequent surgery that followed to repair the injury. Now I am looking at moving to Texas to be closer to some family down there. In my research of the process of changing things from Missouri to Texas I find that their Registration and Title Fees are more that they are here. In addition every Vehicle brought in from out of State has a one time fee of $90.00 in additions to Title and Tags. The only thing I have found as a Pro so far is that there is no State income Tax. Being disabled and on Social Security Disability can start drawing from my 401K and my pension without the 10% early with drawl penalty. still looking at medical and other differences. We own a house and property in Missouri but plan to sell and eventually buy a small place in Texas some where because the wife insists on having a place to go if she wants out of the 5er for a break.

Norm & Rhonda

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Keep in mind the bet you are placing if you decide to skimp on the details when leaving California or other high tax states.

Bottom line, don't play residence games, do it or don't do it.

With my husband being a fed government employee, there will be no skimping! :) We have only been in CA 5 years due a work transfer and have no other ties here and never planned to stay regardless of whether we bought a S&B house or just traveled. I'm sure we will contact an attorney to make sure all our t's are crossed and our i"s are dotted!

Happy Trails,

Jim & Ginger/Nomad Hikers

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Retirement 12/2016

Full-time 04/2017

VanLeigh Vilano/Ford F350

Blog site - https://www.trailer2trail.com/

Facebook page - https://www.facebook.com/search/top/?q=trailer2trail

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You might want to get that storage unit in Arizona instead. California has a reputation for being the hardest state to leave. When we bought an RV in 2010 in Bakersfield without paying CA taxes on it we couldn't even drive through the state for a period of time without them claiming we owed them sales tax even though we had NEVER lived in California. Plus, the dealer had to hire someone to drive our new RV across the state line into Arizona for us to take delivery as we couldn't even take delivery of the rig in California without paying the tax. And the paperwork we signed in Arizona saying we took delivery out of state had to be notarized. Do not fudge anything when it comes to leaving California! I wouldn't even go back the first year for any of the year end holidays as I can see them using that as evidence that you still have ties there. Instead I would get and keep receipts for every place I went for at least the first six months after leaving--camping, food, fuel, etc.

 

Linda Sand

Good to know. We bought our RV in Arizona and are getting ready to order our truck. We are going to contact an attorney about that, as well as, the storage unit. We certainly want to make sure we have all our ducks in a row. We have no other ties here and just lived here because of a work transfer. We do plan to come back for the hiking, but no more than anywhere else.

Happy Trails,

Jim & Ginger/Nomad Hikers

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Retirement 12/2016

Full-time 04/2017

VanLeigh Vilano/Ford F350

Blog site - https://www.trailer2trail.com/

Facebook page - https://www.facebook.com/search/top/?q=trailer2trail

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I also wonder why more people do not use Tennessee as fulltimers residence. There is no income tax, vehicle registration cost is low ($25 year), insurance is reasonable. As to the sales tax, it's high, but that only counts when you are in Tennessee. While traveling the country, you pay the sales tax where you are. I am a Tennessee resident now. When I go fulltime, is there an advantage of changing to TX or SD? What am I missing? Why don't more people use TN?

 

Steve & Gail

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As I remember there was a mail service for RVers in TN that went bully up and left people high and dry with no access to their mail, etc. Without a good mail service that has a continuity plan, etc., this can happen and leaves a poor taste in every one's mouth. And I believe there was also a problem with voting in some areas of TN for fulltimers.

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FYI: Highest sales tax in the country @ 9.75%

That is true only in some municipalities. In others, it is as low as 7 percent.

 

Some years ago, when we began our first attempt to become fulltimers, I spent quite a lot of time researching the pros/cons of different states. Tennessee has a lot going for it. The big disadvantage, as Barbaraok mentions, is that there's no RV-friendly infrastructure in the state to establish a legal domicile and mail forwarding. It's possible that someone could use a UPS shipping outlet for this, because they do offer mail forwarding services similar to those provide by Escapees and others. But in the limited research I've done on this, UPS fees for this are not at all competitive.

 

One advantage to Tennessee is no income tax. They DO charge an income tax on dividends and interest from investments, however. Although at the time I did my research, they exempt the first $1,500 in income for individuals and $2,500 for couples. (Conn. & N.H. have similar arrangements with bigger exemptions).

 

Anyway, back then I began preparing a spreadsheet that compares a number of different state laws and taxes relevant to fulltimers. I'm happy to share that with all of you, as long as you keep in mind that the info is outdated now. I haven't messed with this spreadsheet since 2010.

 

Here's the read-only Google Drive link:

States for Fulltimers

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I think I remember Florida has some troublesome laws about registering an HDT for pulling a fifth wheel. Is Texas generally better for people using an HDT? (Medical is not a factor for us.)

 

Also, could there be any benefit in having different residences for different purposes? For example, could the husband be a resident of Florida and the wife a resident of Texas? Then if it was more advantageous to register a vehicle in one state you could just put it in that person's name. Anybody do this or would it somehow be illegal or problematic?

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could there be any benefit in having different residences for different purposes? For example, could the husband be a resident of Florida and the wife a resident of Texas? Then if it was more advantageous to register a vehicle in one state you could just put it in that person's name. Anybody do this or would it somehow be illegal or problematic?

 

There is a difference in residence vs. domicile. A person can have many residences but only one domicile. I would not risk have separate domiciles for a married couple as that feels to me like asking to be audited since you'd each have to file federal taxes in your separate domiciles. And I sure wouldn't want to have to explain why we chose to do that.

 

Linda Sand

Blog: http://sandcastle.sandsys.org/

Former Rigs: Liesure Travel van, Winnebago View 24H, Winnebago Journey 34Y, Sportsmobile Sprinter conversion van

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There is a difference in residence vs. domicile. A person can have many residences but only one domicile. I would not risk have separate domiciles for a married couple as that feels to me like asking to be audited since you'd each have to file federal taxes in your separate domiciles. And I sure wouldn't want to have to explain why we chose to do that.

 

Linda Sand

 

Yeah, I'm not sure what the correct terminology is for this. But I'm just thinking there's no reason both of you need to have a license from the same state. Of course, you'd both want to be from states with no income taxes. I guess I think this way because that's how we are now. The wife and I have licenses from different states and our vehicles aren't all registered in the same state. Been that way for years while living in different states. Of course, right now it's because I'm in the military. But I don't see why it would need to change when we eventually start FTing. There's nothing saying a husband and wife have to be from/in the same state, right? I'm just wondering what benefit there might be in doing this. I'm sure there are some but don't know what they would be.

 

Also, I know Vermont doesn't require you to live in their state to register your vehicles there. Well, at least they didn't 10 years ago and I don't think they have changed since then. Does anyone register their vehicles in Vermont? Are the registration fees and rules better or worse than states like Florida and Texas?

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There are different allowances for active duty military simple because of the nature of their commitment to the gov't.

We had vehicles registered in VA, my DL was there but Ron always kept his PA license while on active duty

Once he retired that needed to change.

Your insurance company may question why you have different registrations, domicile and DL

Ron & Linda

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