Oregon State Income Tax (2015, credit card, attorney)

[Nell Plotts]

Originally Posted by Larry Caldwell

Somebody pays. If the seller skips out, the buyer is stuck with the bill.

??? The tax/fee is collected at the time of closing. Ours was charged to us during escrow.

[Larry Caldwell]

Originally Posted by Nell Plotts

??? The tax/fee is collected at the time of closing. Ours was charged to us during escrow.

Not all sales go through a title company, and not all sales use escrow. Not all sales involve money at all. When you go to record the title, you can get a rude surprise.

[StealthRabbit]

Originally Posted by Larry Caldwell

Not all sales go through a title company, and not all sales use escrow. Not all sales involve money at all. When you go to record the title, you can get a rude surprise.

Due diligence... DO IT!!!!

simple Title Report will disclose issues / outstanding tax liens.

If you don't trust it, go to the courthouse and check for yourself, VERY EZ procedure.

no need / excuse for 'surprises' when you are buying properties. Taxes can be significant, but are not usually the heavy hitter if you muffed your due diligence. You CAN end up buying someone else's BIG problem and YOU not end up owning it. (How about buying an ex-dry-cleaner site ! ) SUPER FUND!

Why would anyone do a property transaction without doing this?

I would not even guess who would try this (no one I know).

[Larry Caldwell]

I sold some acreage to a neighbor last year. There was no title company, no escrow and no title insurance. We agreed on a price, he sent me a check, we agreed on a surveyor to set the boundary line, and we recorded it at the county clerk. The real estate industry feeds off of manufactured paranoia.

[ccjarider]

Originally Posted by Larry Caldwell

I sold some acreage to a neighbor last year. There was no title company, no escrow and no title insurance. We agreed on a price, he sent me a check, we agreed on a surveyor to set the boundary line, and we recorded it at the county clerk. The real estate industry feeds off of manufactured paranoia.

Do you or he know if there are any liens or easements? If so how do you know? Your memory? What about from before you owned it? How does he know that you are even legally entitled to sell it to him? Your word?

I can agree with you that there are vultures out there waiting to take $. That is true for any industry, not just real estate.

I think that generally, real estate investments involve sufficient enough funds such that it could be a huge disappointment to find out one does not legally own what they thought he/she legally purchased.

Proper diligence can avoid a lot pf pain and unfortunately, that diligence does cost a little money.

[Nell Plotts]

Title insurance should address many of those risks.

[Larry Caldwell]

Originally Posted by ccjarider

Do you or he know if there are any liens or easements? If so how do you know? Your memory? What about from before you owned it? How does he know that you are even legally entitled to sell it to him? Your word?

I can agree with you that there are vultures out there waiting to take $. That is true for any industry, not just real estate.

I think that generally, real estate investments involve sufficient enough funds such that it could be a huge disappointment to find out one does not legally own what they thought he/she legally purchased.

Proper diligence can avoid a lot pf pain and unfortunately, that diligence does cost a little money.

Yep. My word. Obviously, most real estate transactions are anonymous, but you would be surprised at how many deed types are "bargain" deeds transacted between individuals with no third party intervention. Title companies and title insurance are often just an expensive nuisance that accomplish nothing.

[Nell Plotts]

Until you need title insurance when you sell. Most mortgage writers require it.

[ccjarider]

Originally Posted by Larry Caldwell

Yep. My word. Obviously, most real estate transactions are anonymous, but you would be surprised at how many deed types are "bargain" deeds transacted between individuals with no third party intervention. Title companies and title insurance are often just an expensive nuisance that accomplish nothing.

Well I understand there might not be any laws against the practice but it is NOT prudent. Friendships and relationships are not necessarily conducive to good financial transactions.

I may know and like you but I will still verify the agreement we have entered into can legally occur and my interests are protected. Nothing personal- just business.

[jrmh76]

Originally Posted by StealthRabbit

Always run ALL your numbers when relocating, based on your earnings, expenses, and spending. Plus your estate planning including probate, and liquidating your estate. (Stuff happens). If you are concerned about taxes, if possible, declare domicile in SD. (Only one overnight stay per lifetime required... !! ).
Don't trigger domicile elsewhere. Rules vary per state. Some states will get you! CA... & OR too.

If you are in early wage earning yrs, you may wish to consider 'lifelong earnings' in your chosen state.

When I moved from Colorado to PNW, (1980) My company offered WA or OR locations. I purposely chose WA for 2 reasons, one was for a healthy raise due to no income tax. It was a good choice for several reasons. Fortunately I chose a WA/OR border factory (Vancouver) rather than Spokane or Marysville, WA. There are a lot of benefits for me, the access to rare parts, used remodeling supplies, many colleges, and great airport (use all several times / month. I don't purposely shop in sales tax free OR, cuz my WA business tenants can benefit from my business. Also WA is very hawkish for 'USE TAX' ANY business items (paper clips...) bought in OR or online. Also beware that while some WA businesses choose to sell 'Sales tax free' to OR (&MT + 3 other sales tax free states), this is TOTALLY at discretion of each Business. WA will make them accountable to pay 100% sales of gross goods sold, unless the business can PROVE which items / amounts were to tax free customers, and WHICH state those customers were from. Yes, each and every item sold is accountable. PITA

I have OR earned income on occasion. When all is said and done, the net result is ~5-6% OR tax on only my OR income.. Not a deal breaker. But.... if you are 30 yrs from retirement, 5% will get you out the door 18 months earlier. Since I have income investments from other tax free states, I prefer simple taxes, so avoid collecting OR income when possible. My FIL retired to OR from Colorado and he gets hammered. He has his room reserved in our WA border home as soon as he is able to move 5 min north of OR.

Pkease explain triggering domcile and how it can be or bad? You mention SD as good and CA bad.