Residency for "Snowbirds" and driver's license/vehicle registration Collier County (Homestead: credit card, attorneys)

[Movingrightalong...]

Originally Posted by yourown2feet

Looking for Catches that my research hasn't uncovered:

I am considering moving to a small condo I own in FL, while keeping the large MD residence for an unspecified (could be lengthy) time in order to fix it up and sell it. While I don't know how long my time in FL is going to be, it should easily exceed 6 months, and could well be longer. I may not stay permanently in FL, and may eventually move (after the MD residence sells) to another state, such as NC.

Now, the fact that MD and its counties have high income taxes, while FL has none, has not escaped my notice :-) Thus, I've been researching/pondering how to prove FL residency, such that I escape MD income taxes. For one thing, there are some investment accounts I would like to sell, which would trigger capital gains. Avoiding 9% MD/county tax on those gains would be a boon.

I've gathered that the states can be arbitrary about residency decisions. Chiefly, the state that stands to "lose" - in this case, MD - may not agree that you've stopped being a resident, except in the face of overwhelming evidence that you are GONE.

--Spend fewer than 180 days/year in MD: No problem (though I realize it's not enough just to "claim" it; I have to do things that tend to prove it). I have no MD relatives. No FL relatives, either, actually.

--Switch to FL driver's license/voter registration: No problem.

--Go to FL doctors/dentists: Should be OK.

--Continue paying MD/county tax on the MD property: No problem, though I would lose MD homestead exemption.

--Potential Catch: MD residence is worth about 5X what the FL condo is worth. Would this raise a red flag to MD authorities? Is that something the MD authorities would even be able to tell me in advance?

Can anyone foresee any other potential "catches"?

If you deliberately take those steps and renounce your homestead exemption there is little they can do.

The value of the property is irrelevant. You can always say you are downsizing.

[July24driver]

If i moved to florida. And changed my mass licence to florida. Had a vehicltoe registered and insured in florida. But no longer have this vehicle. If i am in mass. Now. But dont have a permanent address anylonger in florida or mass. But my florida licence is still current for several years. And my mass licence needed to be renewed this year in a few months what is the best way to handle this

[tmozer]

My wife and I went through the transfer of domicile from NJ to FL about 6 years ago without many problems. We obtained FL DL's, registered both vehicles in FL, registered to vote, etc. Since our Florida condo is in our names it was pretty straight forward.

Now our daughter is planning to move from VA to live with us in our FL condo. She has the same last name, but other than that will have no FL documentation (like utilitity bills). Can she just start by applying for a FL DL using our address?

[Movingrightalong...]

Originally Posted by tmozer

Now our daughter is planning to move from VA to live with us in our FL condo. She has the same last name, but other than that will have no FL documentation (like utilitity bills). Can she just start by applying for a FL DL using our address?

Just a thought: I'm not sure how old she is, but you may want to check in to what this arrangement will do to your auto insurance premiums.

[tmozer]

Originally Posted by Movingrightalong...

Just a thought: I'm not sure how old she is, but you may want to check in to what this arrangement will do to your auto insurance premiums.

She is 40 with her own car and insurance.

[markjames68]

One ‘trick’ you can do is to sign a lease agreement with her. As long as it has her name and address nobody cares about the rest. That’s one proof of residence, insurance would be another.

[wjj]

Originally Posted by tmozer

She is 40 with her own car and insurance.

Check with your auto insurance carrier regarding whether she needs to be listed on your insurance policy. I don't know about FL, but we got a notice about this very issue from Allstate in IL. Does not affect us since kids are out on their own, but the notice said that we would have to add anyone living in the house for more than 90 days as a listed driver regardless of relationship and regardless of whether that person has their own insurance. It was unclear if the reciprocal was required as well.

[Billaboo148]

I split time I rent in Mass & Fla (snowbird)I will be taking some 401K money out and Fla has No State tax so do I need to get a Fla license ? Or can I keep my Ma licence it is so much cheaper on the car insurance than Florida..If I got a Fla license can I still keep my Ma insurance

[wjj]

Originally Posted by Billaboo148

I split time I rent in Mass & Fla (snowbird)I will be taking some 401K money out and Fla has No State tax so do I need to get a Fla license ? Or can I keep my Ma licence it is so much cheaper on the car insurance than Florida..If I got a Fla license can I still keep my Ma insurance

Reading between the lines, being in FL when you take money out of your 401(k) is irrelevant as far as state income tax is concerned. What matters in your case is whether MA treats you as a resident of MA under MA tax law. Claiming FL residency is not binding on MA. You need to sever MA residency under MA law.

You need to seek the advice of a tax advisor who has a deep understanding of MA residency laws for income tax purposes. In general, keeping an MA driver's license and registering and insuring your cars there would be a big strike against you. That shows an intent to return to MA and continued MA residency.

[IllinoisExit]

Originally Posted by Billaboo148

I split time I rent in Mass & Fla (snowbird)I will be taking some 401K money out and Fla has No State tax so do I need to get a Fla license ? Or can I keep my Ma licence it is so much cheaper on the car insurance than Florida..If I got a Fla license can I still keep my Ma insurance

From a great web-site: https://ronwebster.com/content/makin...-your-domicile


At a minimum it is strongly recommended that the following steps be taken if an individual with two residences seeks to declare Florida their domicile.
A) File Declaration of Domicile with the Clerk of Court in the Florida county where one resides.
B) Obtain Florida drivers license, Florida vehicle registration and voters registration card.
C) If you own property in Florida, file for a Homestead Exemption in the county in which you reside.
D) Transfer securities, bank accounts, brokerage accounts and similar investments to institutions located in Florida.
E) Transfer valuables from safety deposit boxes in the former state to a safety deposit in Florida. (Courts have held the location of a person's safety deposit to be a critical factor in determining domicile).
F) Establish wills, trusts, health care declarations and durable powers of attorney which recite Florida domicile.
G) Change affiliations with religious and social organizations to Florida and seek to request non-resident status with organizations maintained in the former state of domicile.
H) Transfer family possessions, heirlooms and collections to the residence in Florida since it is assumed those items would be kept at a permanent home.
I) File the Federal Income Tax showing Florida as your address and affirmatively state on your last return in your former state that it was you final return for that state. It is beneficial to notify the Internal Revenue Service by certified mail that you have changed your address.
J) File Florida Intangible Personal Property Tax returns by June 30th.
K) Change addresses for credit cards, charge accounts, corporations partnerships to your Florida address.
L) Establish relationships with Florida doctors, attorneys, accountants, and insurance agents.
M) Make sure that you spend more than six months away from your residence up north and seek to be able to document the time spent in Florida id need be through a travel log and/or charge receipts.
N) Direct that paychecks, interest and dividend checks be mailed to Florida.