Countdown To Retirement RV'ing

[Barbaraok]

Quote

I read the article you linked Kirk...and it is still as clear as mud to me. As it states...."domicile" and "residence" seem to be interchangeable terms. Can anyone explain it to me as if I were a child?? (Not too far a stretch) Can I buy a house in any state...and have a domicile address in TX and be tax exempt? Can I spend my f/t days and years in an RV in VA and still claim residency / domicileability in TX and remain Tax exempt? Can I go head, today, and switch my domicile/residency to my daughter's addie in TX and start becoming tax exempt this year? Its all so convoluted!

You can own a house in every state in the country (as well as overseas) that does not determine your domicile.   And it isn't being tax exempt, we still pay taxes, but we don't pay state income taxes on our income.    

Most states have a time limit on how long you can stay before THEY consider you a resident for tax purposes.  So in your hypothetical, Virginia would be the one to go after you for state income taxes if you spent all year, every year, there.   We very seldom venture into Texas anymore as we travel, but we are also mindful of the length of time (most states will be 30 days if you get a job, 6 months if you don't work) in the states where we spend considerable time.   Arizona has a 7 month time frame (they really enjoy having snowbirds come and spend the whole winter with them) before you are considered a resident.      I think the state of Virginia would take a dim view of your  "moving' without actually quitting your job, selling your place and physically moving out of state.  

Banking - you can use any bank/CU you like that has a web presence.  We have BOA, branches in most states, deposits can be done with mobile app.  We rarely use cash, but you can always get cash back using a debit card at grocery stores, etc.  We  each have a couple of credit cards  and designate some for everyday expenses, some for RV travel expenses, and pay them off each month.  All of our retirement funds are direct deposit and we do everything with the bank (except the occasional stop at an ATM) online.   Really very, very easy.    We also try and use the ApplePay feature as much as possible.

If you can't handle emptying your waste tanks then RVing is probably not going to be for you.  Really isn't a big deal unless you make it so.  It isn't hard to do,

 

[hemsteadc]

4 hours ago, MontegoMag said:

4 hours ago, MontegoMag said:

 have a domicile address in TX and be tax exempt? Can I spend my f/t days and years in an RV in VA and still claim residency / domicileability in TX and remain Tax exempt? Can I go head, today, and switch my domicile/residency to my daughter's addie in TX and start becoming tax exempt this year? I

ut if I sell something and someone writes me a check...where do I cash it...where do I deposit it? 

MontegoMag

What do you mean tax exempt?  What kind of taxes?

You can deposit checks over the air with a smartphone bank app.

 

 

Edited July 18, 2019 by hemsteadc

[2gypsies]

I wouldn't change your banking until you're on the road and see how it works for you.  We did use Wells Fargo for small misc. deposits and only kept the minimum in the savings acct which was used for emergency funds. Wells Fargo is all over.  Our investment accounts are at Fidelity and Vanguard and Fidelity does our checking actt.  It all works out smoothly once you get going.

Planet Fitness and the 'Y's':  They're only in big city areas.  If you're boondocking or in most public or RV parks you probably won't find them.  If you're in RV parks they'll have showers.  Otherwise, why not just use your RV?  A lot easier.

Black tanks?  It really is an easy chore.  We both took care of doing it.  In fact, we both did everything - took turns driving and doing the hookups.  You never know when one would get sick or injured. That was our backup.

[Kirk W]

5 hours ago, MontegoMag said:

I read the article you linked Kirk...and it is still as clear as mud to me. As it states...."domicile" and "residence" seem to be interchangeable terms. Can anyone explain it to me as if I were a child?? (Not too far a stretch) Can I buy a house in any state...and have a domicile address in TX and be tax exempt? Can I spend my f/t days and years in an RV in VA and still claim residency / domicileability in TX and remain Tax exempt? Can I go head, today, and switch my domicile/residency to my daughter's addie in TX and start becoming tax exempt this year? Its all so convoluted!

Let's start with the legal definition from Black's Law Dictionary:

Quote

In a strict and legal sense, that is properly the domicile of a person where he has his true, fixed, permanent home and principal establishment, and to which, whenever he is absent, he has the intention of returning.....................  In international law, “domicile” means a residence at a particularplace, accompanied with positive or presumptive proof of intending to continue there for an unlimited time. 

The word domicile is a legal term of our courts and is rarely ever mention in legslative process or state laws. It is the issue of import on things like voting rights, federal income tax and social security and in matters of legal jurisdiction. It does not remove you from any taxes of a different jurisdiction since state income taxes are due in the place that the income is earned. It has no impact on property taxes or sales taxes. You can claim anything or anywhere that you wish and be fine, so long as that claim is never challenged in court. While state taxes are sometimes dictated by domicile for other than earned income, your domicile also determines where your will should be executed and/or challenged. It can play a part in the validity of insurance if you have a major claim and is determined that you are not paying the proper premiums by insuring in a place other than your legal domicile. There are many possible ways that domicile could become an issue, but it really doesn't happen very often. In cases where domicile is challennged in court, factors to be considered as proof of where a legal domicile actually is are things like where you bank, shop, and conduct business; where you belong to clubs or subscribe to a newspaper, where your doctors are located, and generally where you maintain permanent contacts. It is also where most legal documents would be served. 

As far as income taxes owed to your present home state, those accrued up to the day that you move away will be owed, no matter where you may move but the day that you leave that state and establish in a different one, those tax liabilities stop and any tax laws of the new domicile state take over. In Texas there are no income taxes but that does not relieve you of the tax liability that you have on the last day that you live where you are now. I suggest that as soon as you permanently leave your present state you should file a partial year tax return which will serve notice that you are no longer a resident there and won't be paying taxes to them in the future. If you take paid employment while traveling in your RV you will be liable for any income taxes accessed by the state where you are then employed and will need to file a state return in that state or in each state where you have worked in that year. 

[Billy W]

My wife and I are new to fulltime living and some of the things shared here can be difficult to comprehend for someone who hasn't tried it. We elected to use Escapees mail service and love it. If there is one draw back to using an electronic mail service it is getting those you business with to stop sending you paper mail. It cost you money every time they do this. I have found it best to wait until I am at a location for a few days and have escapees place my mail in one envelope and mail it to me. We are now in Rapid City SD and will get our drivers licnese tomorrow then have our vehicles registered here. We have an address provided by Escapees in Box Elder SD and have stayed five nights in the state (although it only called for one night). Regardless of the cost with membership and mail service through Escapees we have saved much more on the discounts provided by being a member than we have spent.

Not sure about the plans for using the YMCA for bathing we use our camper or the facilities at the campground. I agree with the others, black tanks and grey water are part of the life.

[Roads of Life]

Things to think about... that's a BIG think!

I've been researching for a year now and am still on the fence as to what would be best for our lifestyle. You are on the right track... really consider HOW you will use the RV. The Class B is our choice, but you are correct in the size issue. Some people want the Class A comfort and size, and it fits their lifestyle of "wintering" in Corpus Christi and "summering" at their home up north, while others (like us) want to travel the country and expect small roads and boondocking. It all depends on your style of travel.

Another thing to consider... startup costs. After you buy, what do you need to make it safe and livable? I started a list of things like RV Locks, tire pressure monitors, water hoses, tables and chairs, mail forwarding services (we plan on traveling for months on end), surge protectors, additional insurance costs, and so much more. Those costs can be significant.

Just my two cents (from someone still searching!).

 

[2gypsies]

6 hours ago, Roads of Life said:

".....while others (like us) want to travel the country and expect small roads and boondocking. It all depends on your style of travel."

 

for the future.... don't rule out a bigger RV.  We used forest service roads and BLM roads all the time to find our boondocking spot.... with a 40' motorhome.

[MontegoMag]

On 7/22/2019 at 10:08 AM, Roads of Life said:

Another thing to consider... startup costs. After you buy, what do you need to make it safe and livable?

haha...if its not...I won't be buying it! I am not a mechanic OR a handyman!

Thanks for the continuing feedback, I have been away for a few days...due to someone turning in front of me and I and my wife becoming human crash test dummies! Yep...you've watched the slow motion videos and you can empathize how I felt hitting a stationary object at a full 45mph!

Soooo...now that I am having to buy a new vehicle...my consideration is this...

Do I buy an SUV and begin considering a TT again...or stick with my plans to get a Class C and only buy a new vehicle with the intent of selling it when I hit the open road in 4 years? I like the idea someone had about using a pickup bed for secure storage after capping it...but the whole TT whipping down the road gives me pause!

ps...sorry if the pic is too big...I don't have a photo editor

Edited July 24, 2019 by MontegoMag

[SWharton]

Tough luck, happy you are both OK but you now are at a decision crossroad.

Before buying a new car(unless it is critical) I would get to some dealers and look at Class C to make sure you are comfortable with that decision. A TT would work and probably be about the same price overall. IMO you sound like Class C would be in your best interest and overall is simpler to deal with. I think you should look at a small Class A also. There are smaller ones and though they look huge they are easy to drive and provide a more comfortable living style.

If you continue to lean toward a Class C then get a car that you can tow 4 down(confirm you can tow the car 4-down on the FMCA website or Remco).

Why don't you lease a car for a few years until you can make a clear cut decision.............

[Roads of Life]

1 hour ago, MontegoMag said:

haha...if its not...I won't be buying it! I am not a mechanic OR a handyman!

Thanks for the continuing feedback, I have been away for a few days...due to someone turning in front of me and I and my wife becoming human crash test dummies! Yep...you've watched the slow motion videos and you can empathize how I felt hitting a stationary object at a full 45mph!

Soooo...now that I am having to buy a new vehicle...my consideration is this...

Do I buy an SUV and begin considering a TT again...or stick with my plans to get a Class C and only buy a new vehicle with the intent of selling it when I hit the open road in 4 years? I like the idea someone had about using a pickup bed for secure storage after capping it...but the whole TT whipping down the road gives me pause!

Oh my word! I do hope you and yours are okay!

I'll be in the same boat (motorhome!) you are in three years... well, hopefully not becoming a crash test dummy, but finally on the road with whatever we decide to buy. By then I'll be retired, our daughter well on the way to completing college, and all our debts paid off. That's the plan anyway.

I'm in no way mechanically inclined (unfortunately) so we need to consider safety issues and build quality. As a machinist, you should have better luck with repairs!

At one point we were considering a truck camper (Northern Lite). It has the advantage of disconnecting to the truck when not in use, so we would have a vehicle to drive around town and when not traveling. It may be too small for you since you are looking into Class C, but thought I'd mention it.

In the very beginning, when I said let's get an RV, my wife was thinking fifth wheel (amongst other things she wanted to call me that can't be printed!! 😆 ), which is what she considered an RV. That was before we knew there were things like Class B's. The fifth wheel has the advantage of being securely connected and should offer more control than having a travel trailer attached to a bumper. It is more expensive and heavier though, which is something else to consider. Again... just thought I'd mention it.

Take care and good luck on your final decision!

[Barbaraok]

We had a Class C for a while and still towed a car behind it.   It is really so much easier to sight-see, etc. with a car than try and do it without a car.    I really like the Class C, but didn't have enough room to live in fulltime - there is no basement storage in a Class C.   So if it were me, I'd be looking at replacing the car with something that could be towed by a Class C.

[Kirk W]

4 hours ago, Barbaraok said:

It is really so much easier to sight-see, etc. with a car than try and do it without a car.  

We tried it both ways, traveling in a 24' class A with only bicycles for several years and then tried towing just one time, and only once after that did we leave the tow vehicle at home. 

[sandsys]

11 hours ago, Barbaraok said:

We had a Class C for a while and still towed a car behind it.   It is really so much easier to sight-see, etc. with a car than try and do it without a car.    I really like the Class C, but didn't have enough room to live in fulltime - there is no basement storage in a Class C.   So if it were me, I'd be looking at replacing the car with something that could be towed by a Class C.

Proof, once again, that there is no one right way to full time. We lived more than a year and a half in a class C without towing a car and did lots of sightseeing in the C. We really loved never having to wonder if we put the right things in the car before we headed out. Nor worry if there would be a clean restroom when we needed a break. Or a restaurant where we would be willing eat lunch when that time came. Having all the comforts of home right along with you wherever you go is a wonderful thing!

Linda