NV residency
01-01-2017, 07:21 PM
#61
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Joined APC: Feb 2008
Posts: 19,262
Originally Posted by flensr
Both Calif and NY will make every attempt to tax income generated in their states, even if the individual doing the work lives elsewhere. If your trip originates in CA, chances are CA will view that as income generated in CA, and will try to tax it accordingly. I have first hand knowledge that NY does this with medical doctors who live elsewhere but take temporary work in NY, even if they do that work remotely while physically sitting in another state. Need to be very careful how the company is set up to operate in various states if you're gonna play those games.
Not only that, CA will go after a mil pension if the pension was either earned OR benefits paid while a CA resident, even for a short time.
Tax evasion is a big deal, can't blame it all on mil folks gaming the system, and if you're talking about CA you have to consider CA state tax as an unavoidable cost of living, or a "good weather tax" if you're in so cal. Trying to establish residence elsewhere while "working in" CA is a good way to get pooped on unless you're rich enough to get a really talented tax shyster on your side. Last time I checked, "rich enough" was on the upside of $250k per year, and the scheme 10 yrs ago involved setting up an LLC with one employee (yourself), and then paying into a defined benefit pension with unlimited personal and company contribution. Thats apparently able to survive an audit only if you keep it up for long enough to be reasonable that you might actually end up earning back some sort of pension out of the money you squirrel away tax exempt into the pension fund.
But... don't take tax advice from other pilots, and be careful which tax and estate shyster you trust.
Not only that, CA will go after a mil pension if the pension was either earned OR benefits paid while a CA resident, even for a short time.
Tax evasion is a big deal, can't blame it all on mil folks gaming the system, and if you're talking about CA you have to consider CA state tax as an unavoidable cost of living, or a "good weather tax" if you're in so cal. Trying to establish residence elsewhere while "working in" CA is a good way to get pooped on unless you're rich enough to get a really talented tax shyster on your side. Last time I checked, "rich enough" was on the upside of $250k per year, and the scheme 10 yrs ago involved setting up an LLC with one employee (yourself), and then paying into a defined benefit pension with unlimited personal and company contribution. Thats apparently able to survive an audit only if you keep it up for long enough to be reasonable that you might actually end up earning back some sort of pension out of the money you squirrel away tax exempt into the pension fund.
But... don't take tax advice from other pilots, and be careful which tax and estate shyster you trust.
As transportation employees we have a exemption to that law that states if you can't determine where you do 51% of your work you can fall back on your legal residence for tax purposes. There have been occasions where pilots living in tax free states have been forced to pay taxes in other states. Pilots working in training departments not flying the line is one example. CA went after some UA shuttle pilots because they could show they did 51% or more of their flying in CA.
01-02-2017, 12:29 PM
#62
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Joined APC: Jun 2015
Position: A320 Right
Posts: 378
Originally Posted by Flambo
Anyone found a cost effective way to have their tax domicile (Residency) in LAS (NV)?
If you made an "honest mistake " they will put a tax levy and place liens on your stuff.
If they think you were evading taxes you'll find your self in court facing serious fines and possibly prison Having the full weight of the government against you is not a fun place to be. Whatever short-term gains you think you are saving you will wish 10 times over you had just played it straight.
01-02-2017, 05:44 PM
#63
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Joined APC: Feb 2006
Position: 767A (Ret)
Posts: 6,248
Know thyself
Years ago, tax shelters were very popular among airline pilots. A friend told me that he had consulted a respected financial advisor about it, and was asked what he liked most about his job. (It was all the days off). The next questions were about what he liked to do with this free time. (He was a hunter and fisherman who hated all forms of paperwork). After some discussion along these lines, the old guru said: "Son, the best thing for you to do is just fly airplanes and pay your taxes." 
01-06-2017, 04:04 AM
#64
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Joined APC: Feb 2008
Position: Retired
Posts: 651
Originally Posted by tom11011
Do you have a source on that or did you hear it from some person third hand about going to jail. Further, you are saying you have to own property to prove you live somewhere. I guess all the snow birds who stay in Florida for more than six months will all be deported after serving time in jail 
Third Northwest pilot convicted of tax evasion | Peninsula Clarion
07-22-2017, 08:05 AM
#65
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Joined APC: Feb 2013
Posts: 2,936
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