Tax
09-22-2017, 11:29 AM
#21
Gets Weekends Off
Joined APC: Dec 2005
Posts: 8,898
Originally Posted by Name User
HI income tax is >10%. This isn't being cheap. Companies take advantage of tax loopholes all the time. This is just being fiscally smart. Most states only require 6 months + 1 day to be a resident. Small price to pay to save hundreds of thousands over the course of ones career. IMO.
Plenty of guys at my CO own crash pads in places they are based but actually live in FL. This isn't an abnormal lifestyle for people like us.
Plenty of guys at my CO own crash pads in places they are based but actually live in FL. This isn't an abnormal lifestyle for people like us.
Don't want to pay 10% state income tax in Hawaii? Don't live in Hawaii. It's really that simple. You should know that before taking a job at HAL.
And this isn't a company taking a tax loophole. This is outright tax evasion and fraud.
09-22-2017, 11:57 AM
#22
Gets Weekends Off
Joined APC: Mar 2014
Posts: 3,093
Originally Posted by ShyGuy
Ok and if hey live in Florida, commute to HNL, stay in a crashpad before/after a trip and then commute back to Florida, that's perfectly legal. Now continue living in that "crashpad" full time, don't reside in Florida, and only have your mail sent there and keep a FL license, filing a FL state return, while you continue to reside in HNL in your crashpad, that's tax fraud.
Don't want to pay 10% state income tax in Hawaii? Don't live in Hawaii. It's really that simple. You should know that before taking a job at HAL.
And this isn't a company taking a tax loophole. This is outright tax evasion and fraud.
Don't want to pay 10% state income tax in Hawaii? Don't live in Hawaii. It's really that simple. You should know that before taking a job at HAL.
And this isn't a company taking a tax loophole. This is outright tax evasion and fraud.
I agree this isn't something you want to screw around with if you do actually live in said state. IE don't go out and buy a condo in NV as a "residence" and own a 4 bedroom house in HI. But use every tool at your disposal if you don't live in said state - there is no shame in taking full advantage of tax law.
09-22-2017, 12:39 PM
#23
Banned
Joined APC: Dec 2009
Position: Narrow/Left Wide/Right
Posts: 3,655
Originally Posted by Name User
I only know one guy who works for Hawaiian and they live there. However the FL residence was just an example. Many snowbirds live in one state and spend winters in another, but they aren't a permanent residence of those states (example Phoenix, AZ).
I agree this isn't something you want to screw around with if you do actually live in said state. IE don't go out and buy a condo in NV as a "residence" and own a 4 bedroom house in HI. But use every tool at your disposal if you don't live in said state - there is no shame in taking full advantage of tax law.
I agree this isn't something you want to screw around with if you do actually live in said state. IE don't go out and buy a condo in NV as a "residence" and own a 4 bedroom house in HI. But use every tool at your disposal if you don't live in said state - there is no shame in taking full advantage of tax law.
Also many state sales tax laws say if you go to Oregon and by a high priced item you should report and pay applicable sales tax to your home state upon return. I have yet to hear of a pilot who complies though.
09-23-2017, 06:32 AM
#24
Line Holder
Joined APC: Apr 2007
Posts: 82
Actual Hawaii law, for those who care
OK all you cockpit lawyers and residency experts, here's the actual Hawaii law on residency for tax purposes. Please feel free to look it up yourself, you shouldn't trust me, I'm just some guy on the internet.
First, Hawaii Revised Statutes §235-1, definitions. Found here: PART I
It expands upon the statutory language and gives several examples applying Hawaiian law to different sets of facts. Here's an excerpt.
The example I'm really looking forward to hearing about is how a pilot can use his old roommate's Florida address, and he's totally not a Hawaii resident because his mail goes to FL and he votes there.
Take your time.
Kind regards,
JAGBN
First, Hawaii Revised Statutes §235-1, definitions. Found here: PART I
"Resident" means (1) every individual domiciled in the State, and (2) every other individual whether domiciled in the State or not, who resides in the State. To "reside" in the State means to be in the State for other than a temporary or transitory purpose. Every individual who is in the State more than two hundred days of the taxable year in the aggregate shall be presumed to be a resident of the State. This presumption may be overcome by evidence satisfactory to the department of taxation that the individual maintains a permanent place of abode outside of the State and is in the State for a temporary or transitory purpose. No person shall be deemed to have gained or lost a residence simply because of the person's presence or absence in compliance with military or naval orders of the United States, or while engaged in aviation or navigation, or while a student at any institution of learning.
Next up is the Hawaii Administrative Rules. There's a great pdf available here: http://files.hawaii.gov/tax/legal/har/har_235.pdfIt expands upon the statutory language and gives several examples applying Hawaiian law to different sets of facts. Here's an excerpt.
§18-235-1.03
Establishing residency by domicile. (a) An individual who is domiciled in Hawaii is considered a resident.
(1) Domicile is the place of the individual’s true, fixed, permanent home.
(2) The domicile is the principal establishment to which the individual has the intention of returning whenever the individual is absent.
(3) An individual can have several residences or dwelling places in which he or she resides, but can have only one domicile, or permanent residence to which he or she intends to return.
(b) An individual’s domicile may change where there is a concurrence of:
(1) An abandonment of the old domicile with a specific intent to abandon the old domicile;
(2) An intent to acquire a specific new domicile; and
(3) An actual physical presence in the new domicile.
(c) The burden of proof as to a change of domicile is upon the individual asserting that a change in domicile has taken place. The individual must establish a change of domicile by clear and convincing evidence.
(d) An individual can acquire a domicile by birth, choice, or operation of law, as set forth in sections 18-235-1-04, 18-235-1-05, and 18-235-1-06, HAR, respectively. [Eff 2/16/82; am 9/3/94; am and ren §18-235-1.03 8/28/98] (Auth: HRS §§231-3(9), 235-118) (Imp: HRS §235-1)
So here's my challenge to those who insist pilots have a sure fire way of avoiding Hawaii state income tax. Be sure to discuss all facts and circumstances with specific citation to relevant statutes and rules, both Hawaii and federal law.Establishing residency by domicile. (a) An individual who is domiciled in Hawaii is considered a resident.
(1) Domicile is the place of the individual’s true, fixed, permanent home.
(2) The domicile is the principal establishment to which the individual has the intention of returning whenever the individual is absent.
(3) An individual can have several residences or dwelling places in which he or she resides, but can have only one domicile, or permanent residence to which he or she intends to return.
(b) An individual’s domicile may change where there is a concurrence of:
(1) An abandonment of the old domicile with a specific intent to abandon the old domicile;
(2) An intent to acquire a specific new domicile; and
(3) An actual physical presence in the new domicile.
(c) The burden of proof as to a change of domicile is upon the individual asserting that a change in domicile has taken place. The individual must establish a change of domicile by clear and convincing evidence.
(d) An individual can acquire a domicile by birth, choice, or operation of law, as set forth in sections 18-235-1-04, 18-235-1-05, and 18-235-1-06, HAR, respectively. [Eff 2/16/82; am 9/3/94; am and ren §18-235-1.03 8/28/98] (Auth: HRS §§231-3(9), 235-118) (Imp: HRS §235-1)
The example I'm really looking forward to hearing about is how a pilot can use his old roommate's Florida address, and he's totally not a Hawaii resident because his mail goes to FL and he votes there.
Take your time.
Kind regards,
JAGBN
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