California income taxes

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11-17-2019, 03:07 PM

serce

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California income taxes

I am just wondering if anyone here has experience with having two residences, one in California and one in no income tax state. I have a house in Florida but for work purposes I am considering getting a condo in the Los Angeles area. LAX would be my domicile. To my understanding, as long as I maintain my residency in Florida I am not obligated to pay the ridiculous California income tax?

11-17-2019, 03:24 PM

RhinoBallAuto

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I’d put your Google fu to work. Tons of articles on the interwebs on this very subject. Blue states such as CA, NY, NJ have been known to great lengths to pursue folks for state income tax who have dwellings in their states. I’m sure there’s a path ahead, but there’s a number of land mines to be sure to avoid....

11-17-2019, 04:01 PM

Excargodog

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Quote:

Originally Posted by serce

The California franchise tax board is the single most aggressive tax agency in the US. For instance, if they decide you are - for tax purposes - liable for California taxes, but you have a spouse who lives outside California in a community property state, they expect you to pay them tax on all your income and half of that if the spouse.

Simply being domiciled in California is not necessarily a problem, as long as 51% of your flying is out of the state. Actually owning a condo there and can easily attract their attention and may require you to be able to prove that you were actually in California less than you were in Florida.

So how long you think you are going to be on reserve at LAX?

If there’s any doubt as to whether you will be in California over half the year CONSULT A CALIFORNIA TAX LAWYER.

11-17-2019, 04:41 PM

badflaps

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This may not be important, but, I was based in Miami and had a rental. I also owned a condo in Chicago. I considered FL. my tax home. Il. came after me for back taxes. I proved my residency in Florida (Voters card) DL license, etc. Illinois said all well and good, by the time we take you to court, it will be cheaper to settle with us. They were right.

11-17-2019, 05:12 PM

Excargodog

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This might give you an idea of who you are up against:

https://www.americanbar.org/groups/b...16/12/08_wood/

https://www.forbes.com/sites/robertw.../#6f1cd24d3e7f

https://www.natlawreview.com/article...wary-taxpayers

Or this...

11-18-2019, 01:48 AM

sailingfun

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Quote:

Originally Posted by serce

You can try this but owning property in CA and being based there is a big red flag. If audited will you have records showing travel to and from FL? Will you have credit card receipts backing where you spend time? Will your cellphone records substantiate your claim? Your cellphone always knows where you are. Lots of people do it and with proper records you can beat a CA audit but you better have all your ducks in a row.

11-18-2019, 05:11 AM

trip

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I know a guy who has does this. He and his wife go to the extent of never using a credit/debit card or regular cell phone. I have also heard of CA getting what they think you owe them by payroll garnishing and then you get to prove otherwise. Property ownership makes this much more dicey, tread carefully.

11-18-2019, 06:08 AM

galaxy flyer

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There are phone apps that will record your daily travels to prove you were not in CA. I met a passenger who manages his tax residency thru one state with vicious tax department (not CA): a no income tax state and a foreign residency. It basically tells him where to be, especially avoiding the EU tax collectors.

11-18-2019, 07:19 AM

Bahamasflyer

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Without straying into politics.....I can’t wait till CA, NY and other high tax states implode in on themselves with these crazy antics when there is a mass exodus to lower tax states.

I’d give it 10 years, maybe 20 at the most.

Then who they gonna try and steal from??