Residency and avoiding state income tax

[spread]

Why not focus on reducing your reportable income...
Do the double irish trick google and ms do.
Create a foreign corp and transfer your trading technology to it.

Interesting idea, I think I'm not in a situation where this makes sense.

As a trader, where you originate your network access into the system will leave a footprint regarding where the majority of your trading occurs.

What I don't get is this; why would you ask something like this here when there's nothing illegal about inquiring with a tax attorney regarding how to set up a legal tax dodge -- such as a trading corp. in a non-taxing state so you can, as an employee, draw whatever minimal income you need in the high-tax state you're living in.

if you spend 6 months plus a day in any state for the purposes of taxation you are considered a permanent resident and are required to pay applicable income tax. pls don't think that not owing prob/a car/whatever will somehow make you invisible to the tax man.

My network footprint could certainly be a problem, but my thought is that a state would need a reason to investigate this. I've never lived in the state I've just "moved" to, and I can't think of a scenario in which this state would suspect that I lived within it.

I do appreciate all of the opinions, I clearly have much to learn. I'll talk to a tax attorney. Reason for posting here is for the variety of opinions of people who may be or have been in a similar situation.

 

[GordonTheGekko]

Re: network footprint
This is very easily midigated by a proxy server. They're cheap and fast.


Claiming residency in another state is legal and common, so I would suggest checking with your attorney (I assume you have one ).

Setting up an offshore corp is definitaly illegal, in the sense that it would be very easy to be prosecuted for (tax evasion). Take the state route, from what I spoke to about with a lawyer on the same subject, it isn't difficult and you can estentiallu spend as much as uou want in your 'real' state.

 

[GordonTheGekko]

By the way, regardless of whether you're married or not, most states will consider you married and penalize you for not declaring so. It actually may be cheaper to get married tax wise.

 

[Clubber Lang]

Quote from FrankSlaughtery:

first, don't know if you've thought about this but some states consider you MARRIED if you and another person have lived in the same residence after a certain number of years. i believe NJ is one of these states.

NJ does not recognize common law marriage if the relationship was formed in the state. They do however recognize out of state common law marriages if the couple moves into NJ from a previous common law state.