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Renting house and domicile implications


ItinerantLife

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51 minutes ago, ItinerantLife said:

Or will the fact we own property in VA be an issue?

Non-issue. As long as your DL, insurance, accounts and such reflect your new domicile state it shouldn't be a problem. To help reinforce that, although not absolutely necessary, it would be advisable to establish a bank account in your new state. Something else more than just an address showing that you are vested. 

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Welcome to the Escapees forums! We are happy to have you here and we will do all possible to help and assist you.

Owning a house that is rented in one state while claiming domicile in another is no problem as long as you can demonstrate to the former state that you have actually moved out of state. The primary issue will be taxes, so it may take just a bit more than previously stated. I suggest that you start with the filing of a partial year income tax return to VA as soon as you are established in your new state of domicile as a notice to VA that you have moved. You will continue to be required to pay VA real property taxes and income tax will need to be filed on the rent received, but you should not report any other income since it won't be VA income. I suggest that you may find this article from a past Escapees magazine helpful. 

 

Good travelin !...............Kirk

Full-time 11+ years...... Now seasonal travelers.
Kirk & Pam's Great RV Adventure

            images?q=tbn:ANd9GcQqFswi_bvvojaMvanTWAI

 

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3 hours ago, GlennWest said:

Don't think the bank is revelent.

Technically, very little is relevant unless you happen to be challenged on your domicile claim. Read some of the things written by Shawn Loring (who is an attorney) lately in the Escapee magazine. State laws do not spell out what you must do to define domicile but the key is being able to convince a court that you actually have moved from the previous state to the new one with the intention of making this a permanent move. I quote the US Law Dictionary:

Quote

Simply put, your domicile is your home—the state you consider your permanent place of residence. If you aren't living there right now, then it's the place to which you intend to return and make your home indefinitely. You can have more than one residence, but only one domicile.

 

The catch is that only a court of law can determine what your domicile is if it is disputed and state tax issues are by far the most common trigger for such cases.

Good travelin !...............Kirk

Full-time 11+ years...... Now seasonal travelers.
Kirk & Pam's Great RV Adventure

            images?q=tbn:ANd9GcQqFswi_bvvojaMvanTWAI

 

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5 hours ago, SWharton said:

I don't think we are talking about a physical bank, just have the address you use with your bank be in your new state..................

Again I don't use a local bank and see no need for one. Been this way for 20 or more years. Still use it now that we are Texas residents. Many do. 

2003 Teton Grand Freedom towed with 2006 Freightliner Century 120 across the beautiful USA welding pipe.https://photos.app.goo.gl/O32ZjgzSzgK7LAyt1

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