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Old 01-06-2012, 03:54 PM
 
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Tennessee, Like Florida has no income tax. So, it is a popular domicile for those who live in states with high tax rates.

Domicile is different than residence. It arises by birth or by choice and it has been said that it is the place that when one is elsewhere they have the intent to return. Florida has a declation of domicile which is a form that is obtained from and filed wit the county cleark in the county of intended domicile. Banking, voting, mail, associations, property ownership, are all indicia of domicile. And as stated above, foreign states with income taxes resist a change of domicile from persons who spend more than half the year in the foreign state.

Good estate planners find it easy to establish domicile in Florida or Tennessee for clients who would significantly benefit without any risk of fraud or penalties whatsoever.
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Old 01-06-2012, 04:32 PM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 17,938,980 times
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Quote:
Originally Posted by caco54 View Post
Here's my plan...no house. I plan on selling my "primary residence" and renting on the Jersey Shore for the summer and the Carolina's in the winter. Cut back on all "possessions" that I don't need or really want. No up keep, property taxes, etc, just some minor items and the clothes on my back. Banking and bill paying on line, cell phone should cover and car insurance and registration from the cheaper location. Great locations that the kids, friends and family will like to visit. I know it sounds like a "gypsy" lifestyle but it may work for me and the Mrs. I am looking at $25,000 a year in total "housing" costs with the ability to move out or on at 6 months notice. I am currently paying $8,000 in taxes and another $1,200 a month in gas, electric, cable etc so it should be almost push and I will have more "flexability" and better locations. The only issues I see may be MD and Dentist related but I will face up to those issues when they arise. Coments?
Seems like every nice rental I lived in when I was younger was converted to a condo during one real estate boom or another. Also - landlords like to raise rents (when they can - and they can now in a lot of places). And I just hate the thought of moving unless I'm the one who decides to move. Also hate the idea of following a lot of rules that a landlord might impose on me. We last rented for 18 months while we were building our house (in 1995) - and we had to pay for every nail hole we put in the wall to hang a picture when we moved out.

FWIW - we are "one house" people. That's enough for us to deal with. Here in Florida - it is very fashionable to own a summer place in an area like western NC - but the idea of a small town that is overrun with people from Miami in the summer turns me off. And the heat doesn't bother me enough to own a place in a seasonal area where you have to make a reservation at a mediocre restaurant or a tee time on a golf course 2 weeks in advance. I would say in general that I dislike small to medium sized places that have large numbers of seasonal residents/visitors who overwhelm everything during "the season". I used to live in Miami - but Miami is big enough that seasonal people really don't make a dent in things (the traffic is always awful ).

Apart from the obvious things about owning more than one place - here are some things that either haven't been mentioned - or mentioned only briefly.

TAXES AND SIMILAR. If you're looking at places in 2 different states (or - as in WWanderer's case - 2 different countries) - you have to consider the tax implications. Some states might have very good tax climates for someone - others might not (of course - tax mileage will vary depending on personal circumstances). And various states are more or less aggressive dealing with part-time residents. Although I wouldn't bet 100 bucks on it - I think there are now some states that have proportional taxation (e.g., if you live in the state 25% of the year - you'll owe taxes on 25% of your income - regardless of your "legal residence"). Like with professional athletes. If a professional football player plays a game in - I think - a state like Massachusetts - even if he resides in Florida - he'll owe Massachusetts state income tax for that proportion of his football income that he earns on the game he played in Massachusetts. I don't know if there are many states like New York that require you to keep diaries of where you are every day of the year to determine residence - but I wouldn't be surprised if it's not unique.

And there's more than income taxes. Various states have estate and/or inheritance taxes.- not only income taxes. Estate planning that works in one state may not work in another. So you'll need some professional advice from an estate planning lawyer/CPA before making a decision. And may have to file more than one state tax return.

Then there is property tax. Most states have some goodies for residents. Here in Florida - we have homestead exemptions - other goodies as well for residents in certain categories in addition to the homestead exemption.

INSURANCE. Homeowners' insurance is difficult in Florida. And it is usually harder to get and more expensive unless your place is owner-occupied most of the year. And don't think that moving into a seasonal condo with few full-time residents helps. All that means is the insurance committee probably hasn't met more than twice in the last year - and that your insurance may well be inadequate.

There may be similar problems with auto insurance - umbrella insurance - etc.

MEDICAL STUFF. Do your plan(s) cover doctors/dentists in place X and place Y? Whether it's pre or post Medicare coverage? And - if you plan to spend 4-5 months in your secondary residence - you will need 2 sets of medical providers (unless places X and Y are pretty close to one another). You're not going to fly from South Carolina to Massachusetts - or from NC to Florida - or vice versa - every time you need a doctor/dentist appointment). And - as you get older - you will need more medical stuff - even if it's only for "routine maintenance".

This becomes an especially important issue for people on Medicare - as fewer and fewer providers accept new Medicare patients. I really don't want to spend a summer in Asheville - need a doc - and be told that there isn't a PCP in town who will see me as a new patient

MISC. Many older people have second (or third or more) marriages. Many of them have pre-nups. How does the law work with pre-nups in different states? Ditto with other documents (like living wills).

You really have to crunch numbers too. I reckon that it would cost us maybe $20k+ or so a year to have a nice second place. That's like 50 nights a year at an average luxury hotel. Where I don't have to worry about maintenance - can throw wet towels on the floor - and - in general not have a care in the world. And I don't have to worry if there's a hurricane in the summer at my winter place when I'm at my "summer place" - or a blizzard in the winter when I'm at my "winter place". I never have to learn what an "ice dam" is . Robyn

P.S. I had pretty good instincts about vacation home properties in the 80's and 90's. Wanted to buy in lots of places we went on vacation - like Aspen or Jackson Hole. My husband said "thumbs down". Missed out on some good investments (sh** happens - but we did ok). But now - 20 years later or so - we probably would have sold any place we bought then at least 5 years ago - and I don't think the potential for investment returns is anywhere near now what it was then. Today - I'd look at it more or less as a "lifestyle" thing.
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Old 01-09-2012, 12:51 AM
 
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To Caco 54, asking for "comments" on renting in two places-
what about older age? Would you then expect to buy somewhere, and what might the market be like where you want to or need to be?
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Old 01-10-2012, 11:02 AM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 17,938,980 times
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Quote:
Originally Posted by Wilson513 View Post
Tennessee, Like Florida has no income tax. So, it is a popular domicile for those who live in states with high tax rates..
Tennessee does have an income tax - although it is limited as follows:

The individual income tax is imposed only on individuals and other entities receiving interest from bonds and notes and dividends from stock.
Enacted in 1929, this tax was originally called the Hall income tax for the senator who sponsored the legislation. The law can be found in Tennessee Code Annotated in Title 67, Chapter 2.
Exemptions:
Persons over 65 with total income less than $16,200 for a single filer or $27,000 for a joint filer are exempt.

Due Date:
Annual - April 15
Tax Rate:
6% of taxable income


Robyn
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Old 01-10-2012, 11:13 AM
 
Location: Alaska
40 posts, read 73,680 times
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Well what were thinking of doing is keeping one home as a base to operate from and picking up a motorhome to travel the country in. This way we can have the freedom to see the country from sea th shining sea in comfort and only have the hassle of one house.
Good luck and enjoy!
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Old 01-16-2012, 06:07 AM
 
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my biggest problem is remembering what I have and where I think I have it. I think I have something at one house so I leave it and when I get to the other I have to buy a new item.....sometimes I have three of something at one house and zero at the other
I am ready to just sell one of the homes and stop the semi annual pilgrimage from north to south and just live down in paradise all year!
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Old 01-17-2012, 09:00 AM
 
7,340 posts, read 16,650,851 times
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Wife and I DO like this!!



Quote:
Originally Posted by htlong View Post
my biggest problem is remembering what I have and where I think I have it. I think I have something at one house so I leave it and when I get to the other I have to buy a new item.....sometimes I have three of something at one house and zero at the other
I am ready to just sell one of the homes and stop the semi annual pilgrimage from north to south and just live down in paradise all year!
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Old 01-17-2012, 10:22 AM
 
Location: Toronto, Ottawa Valley & Dunedin FL
1,409 posts, read 2,356,004 times
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Quote:
Originally Posted by htlong View Post
my biggest problem is remembering what I have and where I think I have it. I think I have something at one house so I leave it and when I get to the other I have to buy a new item.....sometimes I have three of something at one house and zero at the other
I am ready to just sell one of the homes and stop the semi annual pilgrimage from north to south and just live down in paradise all year!
I'm just starting down this road, but with 3. Collecting stuff here in our Florida kitchen, each kitchen is different, but some things you just need. So far only 1 food processor, 2 microwaves, but plenty of kitchen gadgets times 3!

I've already started a list of things that I either want to take back north with me, or buy duplicates here (cheaper) and take north.
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Old 01-17-2012, 02:49 PM
 
13,322 posts, read 25,574,131 times
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Regarding the motorhome/RV idea, do consider the very real possibility of dramatic gas prices in the future, or at least, an unreliable ability to predict those costs.
After buying and selling property out West twice on my "summer in Colorado" daydream, I have decided that I'm keeping the little dream house outside Boston as my home (since it has really become my home) and spending money to rent/visit elsewhere. There's an ensuite room in the town I love in Colorado, rents for $450/month (microwave and small fridge/sink) and I could even rent it for the year and go there in the summer and come out way ahead over buying something.
Then there's the question of pets and cars (2,000 miles apart). I have worked on this in my head over and over and have only come up with "vacation" and "pay for visits".
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Old 01-17-2012, 02:54 PM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 17,938,980 times
Reputation: 6716
Quote:
Originally Posted by Wwanderer View Post
I'm just starting down this road, but with 3. Collecting stuff here in our Florida kitchen, each kitchen is different, but some things you just need. So far only 1 food processor, 2 microwaves, but plenty of kitchen gadgets times 3!

I've already started a list of things that I either want to take back north with me, or buy duplicates here (cheaper) and take north.
Just FWIW - apart from the Bed Bath & Beyond coupons - you can find deals on the internet. Amazon often has buy 3 - get 1 free on select kitchenwares. Robyn
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