|
humorist-workshop
real estate
I rent in california, and was looking to buy some property in Nevada to rent out. I spend quite a bit of time there through out the year. Can I claim residence in Nevada for tax purposes?
[ ]
Want to answer more questions in the Work & School category?
Maybe give some free advice about: Personal Finance?
You can only claim residence in one state at a time, and most states have minimum time periods that must pass before a person can be considered a resident. Factors such as where you earn your money are relevant, especially if you become unemployed and need to seek compensation. There's been at least one case in California where a telecommuter actually lived out of state and was downsized. There was a question as to whether he or she was eligible for unemployment benefits under the California system or the other state's system-- if he or she was eligible at all. You do not want to be employed and earning an income in one state while claiming residency in another. If you're considering going for a Nevada residency to avoid California taxes, you might lose more than you gain.
You do have the option of registering a LLC (limited liability company) in one state or the other and purchasing the property under the LLC. You can retain ownership that way even if you move out of state. It does change the way you have to do your income tax; you must file taxes for the business separately and split off your profits and losses.
]
If you don't plan on residing there, you may not be able to. Usually to claim residence you have to live there 6 months or more out of the year. If you are renting out the Nevada property, this will show on a lot of records. Your renters will have the address on their drivers licenses, their utility bills, school records, etc. so you can't exactly claim you lived there.
This is just an opinion, but to get better advice, ask the California state tax bureau.
]
As long as you have an adress you should be able to claim residence. But you can only hold residence in one state, so you would no longer have recidence in California. Go to the local DMV. They should be able to answer your questions.
]
If you buy property, I don't see why not.
]
im sorry i really dont know again sorry
kate
]
More Questions: |