Why the lowest ones don't include Florida and Texas? Property tax taken into account?
state income tax
- Thread starter graeco
- Start date
I believe that the following link contains the most recent info available on this issue:
http://www.taxadmin.org/fta/rate/04taxbur.html
According to the above-cited list, Hawaii is the most expensive government and New Hampshire the least expensive. Property taxes are frequently left out of this sort of calculation, but they are a very substantial portion of a person's tax bill. For those who choose to rent, rather than own, property taxes aren't relevant, but the risk is that the appreciation of one's real estate investment in some areas may outpace the lost revenue taken in taxes. Everyone's circumstances are different, so usually it's better to look at the separate numbers and then decide which taxes are most likely to affect you personally. See the following table for relevant statistics:
http://www.taxadmin.org/fta/rate/04taxdis.html
Quote from birdman:
A quick search at Google for "mail forwarding service" shows a few Nevada mail forwarding services for RVers, world travels, and those who want to maintain a legal Nevada resident status for tax reasons.
Of course, I'm thinking one would have to license his vehicles there too. But the real question is could a person use a service like this in Nevada or Texas or any state without a state income tax, in order to avoid state taxes?
Would it be legal
License your vehicles under an LLC. Costs about 2-3 hundred but you make that back when you sell the car. Instead of signing over the title you sign over the LLC and the new owner does not have to pay taxes on the vehicle. He just continues to reregister it.
Plus with an LLC some road-rage retart can't look up your addess by the plates. All he will find is the LLC.
most likely, that info was from here http://www.retirementliving.com/RLtaxes.html
I like kjkent1's link best of all http://www.taxadmin.org/fta/rate/04taxdis.html
it puts Texas at #48 which means I could have saved 5k in taxes last quarter alone by moving 125 miles southwest
another thing one has to consider if relocating is property values, homes in Florida cost about 4 times what they do in my town for a comparable house
it's a real eye opener to go to http://realtor.com and search a town for homes and see what your dollar will buy
Quote from birdman:
A quick search at Google for "mail forwarding service" shows a few Nevada mail forwarding services for RVers, world travels, and those who want to maintain a legal Nevada resident status for tax reasons.
Of course, I'm thinking one would have to license his vehicles there too. But the real question is could a person use a service like this in Nevada or Texas or any state without a state income tax, in order to avoid state taxes?
Would it be legal
there are plenty of resident agents in NV. you must have a resident agent so if someone sues your NV entity, they can serve the resident agent. NV just levied a $100/year biz tax on entities, and taxes are $250/year.... in cali, franchise tax is $800/year. you can set-up outta NV and then operate in other states, it costs a few bucks to get licensed in the other state, and again, you need a resident agent. you must also file returns for the entity, which can cost a few bucks... the overall cost of the entities is more than 200-300 bucks to set-up and more than that per year.
Quote from birdman:
for some, another consideration would be that you only have to spend 6 months of the year in Florida (or probably any state) to file your taxes as a Floridian
You have to wonder about those rich cats that travel the entire world on a regular basis, they probably get their mail in a no state income tax state ... have accounts there and if they are only home 8 weeks out of the year, who cares, they are still a resident of that state.
There are precious few worthwhile legal ways to avoid federal tax, but i imagine there mght be ways to file as a Floridian or a Texan without spending much time in the state. Now mind you, it's definitely not worth risking if it's illegal, but if it's legal, then it's exploitable
i also think in FL your home is protected against judgements; heard stories of rich guys buying huge horse farms prior to getting sued and then when the other guys wins a judgement, its like "hey, eff off".... OJ lives there, wonder why?
wow, for once i have a bit to say on a thread. ive looked at properties in hood river & bingen/White Salmon... check out the bluff homes on the WA side of the river.... the locals dont like to drive across the bridge & HR is more upscale, so i think the WA is a better buy.... HR is a pretty cool town and the people kinda have a "ski resort" type personality (collective of course). hood river has exploded, i tried to by a 2-condo development while it was under construction last august (all cash), and the f**cking buildier would come off the asking prices by a penny - now thats a hot market - when a developer wont 100% presell a deal all cash!
i wouldnt buy in Stevenson, its a wide spot in the roa, but they are building a casino near channel locks, so that should increase economic base. i recently purchased in camas, WA, which has great school system, close to PDX & good quality of life. again, teh school system is excellent. it seems to me that the Oregonians kinda look at the folks in Camas/Washougel/Vancouver as being kinda retarded, but the Prune Hill area of Camas was well priced when i bought last year. BTW, i tried to buy 12 unit apt project in HR and missed by a day! if you check out these areas, look at renting too, its real affordable; you have no state income tax, no property taxes as a renter & can make big purchases in Portland.
if you like the PNW - check out bellingham, WA, cool college town on the bay - waterfront homes were high $300K's last year, but the economic base is limited, but you dont care if you are trading.... my next trip is to BC, i can see the chinese driving r.e. prices there.
States have "homestead" exemptions, that permit a homeowner to preserve a certain amount of their equity from their personal residence, in the event of a Chapter 7 (total liquidation) bankruptcy, which usually results when the govt. or some private party gets a large judgment (for unpaid taxes, extraordinary medical bills, large personal injury award, etc.). Recent changes in federal law have taken away some of the benefits of these exemptions, but for many, as long as they haven't failed to pay child or spousal support, or been found liable for fraud or some other intentional injury (e.g., assault, battery, defamation, etc.), the homestead exemption is still very viable.
California's homestead exemption is $75K, Oregon's is only $30K, some states are lower, others, higher. Texas and Florida are unlimited. So, if you own a 20 million dollar ranch in Texas, free and clear, you can escape in bankruptcy from most of your creditors with your equity completely intact.
Every jurisdiction has advantages and disadvantages. The best place to avoid taxes is on a Caribbean island, but you won't have the protection of the U.S. military or even the county Sheriff if you get into trouble. So, you must do your homework and then decide what's best for you.
even single guys that are buying should focus on areas with good school systems. people will pay up big for good school system. if you look at manhattan beach, which as a great school system, you save maybe $20,000/year for public vs private school for 2 children in west l.a. - that amount will support $300,000 in mortgage debt, which over 20-30 years will likely appreciate quite nicely. so if you move there with 2 children & have a $600,000 mortgage, the "net" is $300,000 after considering the bennie of school system. my son, who was a sophomore in high school this past year, earned credit for a college course & 4 of his courses next year allow for college credit if he passes the tests. he just retruned from summer study (only 3 weeks) in germany - apparently college tuition is "free"
anyone coming to Socal, i would checkout san clemente - its a totally cool little town in the south end of OC... close to san onofre though -