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how to save a tax from capital gains legally?
- Thread starter trend2009
- Start date
Quote from stevenpaul:
Thanks for responding. I'm enjoying this opportunity to continue my research on this subject.
I'm pretty sure at least one of the tax-free states doesn't have any time limit to establish residency: Washington. That's the one I was considering using as a tax haven for numerous reasons, and have looked into that one more than the others. On the following site, the requirements are spelled out for establishing residency in WA, at least for purposes of government assistance. You'll notice #2 on the list of requirements states how one "does not need to live in the state for a specific period of time to be considered a resident."
http://www.dshs.wa.gov/manuals/eaz/sections/Residency.shtml
The Department of Revenue of Washington state spells out the state's requirements yet more thoroughly:
http://dor.wa.gov/content/contactus/con_residdef.aspx
As you can see, it is easy to become a resident of Washington, and there is no requirement of maintaining a physical presence there for any specific length of time. Note the site's use of the expression "any of the following," as opposed to "all of the following," suggesting that if any one of the criteria on the list are met, the full requirements of residency are satisfied. Admittedly, my only sources on this matter are government websites such as these. If they're misleading or I'm missing something, please let me know.
In any case, my real concern is how the Franchise Tax Board of California, the state where I spend most of my time currently, would feel about losing their handout. Maybe this topic ought to be turned around to address the question of how long one can spend in a given state WITHOUT being considered a resident.
We are in identical situations. I am in CA as well. It would save an enormous amount on taxes if I could claim WA residency.
I haven't been able to find a clear cut answer, and I imagine they wouldn't want to legally allow this.
Have you found anything else on the time limits of both CA and WA?
even if you can gain wa residency status that does not mean ca will release you from tax liability if you live there most of the year. you have to know what the ca rules are.Quote from DisciplinedHedg:
We are in identical situations. I am in CA as well. It would save an enormous amount on taxes if I could claim WA residency.
I haven't been able to find a clear cut answer, and I imagine they wouldn't want to legally allow this.
Have you found anything else on the time limits of both CA and WA?
For CA, I found the following:
- namely, you are a CA resident if your stay in CA is for other than temporary or transitory.
- you will be presumed to be a CA resident for any tax year in which you spend more than 9 months in this state.
- namely, you are a CA resident if your stay in CA is for other than temporary or transitory.
- you will be presumed to be a CA resident for any tax year in which you spend more than 9 months in this state.
Quote from DisciplinedHedg:
We are in identical situations. I am in CA as well. It would save an enormous amount on taxes if I could claim WA residency.
I haven't been able to find a clear cut answer, and I imagine they wouldn't want to legally allow this.
Have you found anything else on the time limits of both CA and WA?
You cannot become a resident of another state, such as Nevada, and expect to drop residency from CA, while you are still under the legal definition of CA residency.
For example, if someone works in L.A., and becomes a resident of a state like South Dakota (such as the "fulltime RV people"), CA will likely still consider you a resident for tax purposes
CA will get their taxes from such a person, or that person will be considered to be committing fraud.