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I am hoping to get advice on how to cut all strings with California when I retire. I know that CA likes to follow its ex residents to extract taxes after they leave. SO I am hoping that those that have cut the strings can help me
I will be moving to TN, so will not be filing taxes there. I already have bought a home there and have registered one vehicle there, one that stays there.
When I next visit I will open a checking account there.
After I retire I will transfer my remaining checking/savings account to a branch in TN with the same bank. I will register to vote in TN, transfer the mailing addresses to all credit cards to TN, register the 2 remaining vehicles (as soon as they get to TN, may take a few weeks after retiring). I will also get a TN driver's license.
I hope to sell the CA house at the time I retire, but it may or may not sell fast enough for that to happen. Either way I will not be living in it.
The only thing that I would still have in CA is a financial manager for a trust fund (from my parents) that is invested in stocks and bonds. The mix is all over--international. domestic. I hate to think that having the FM in CA would make the profit from that CA taxable, would it? What if he avoided inverting in say bonds from CA and CA located entities? Do I need to find a FM in TN? I do like the one in CA and he has managed the trust for a few decades.
Also I have a CA issued teaching credential. I might tutor or volunteer in schools, and I homeschool my kids. Would that play into anything with CA?
Any recommendations? Basically I do not want CA to follow me and try to extract taxes for anything AFTER I leave. (And yes, I will pay income taxes as a part year resident for the year I leave...but I want that to end our relationship.)
Welcome to Tennessee! We did the same thing you did, but neither of us received a pension for the time we worked in California. We sold our house before we left CA, so we were able to cut all ties when we moved. I would talk to my tax preparer about the trust fund issue & taxing any retirement income.
Things are a lot different here, but it's pretty nice to not have state & local government sticking their noses in your life!
If you don't live in California, they're not entitled to tax you on non-California income sources. If you decided to rent your house because it wasn't selling, you'd have to pay non-resident state income tax on that income. A brokerage account isn't a California income source even if your financial adviser sits in California.
LOL..this thread made me think of the song "Hotel California".
Welcome to the Hotel California
Such a lovely place (Such a lovely place)
Such a lovely face
Plenty of room at the Hotel California
Any time of year (Any time of year)
You can find it here
..
"Relax, " said the night man,
"We are programmed to receive. You can check-out any time you like,
But you can never leave! "
... THANKS for asking those questions, lae60! - Questions like those have been on my mind too, as we'll be "bound for distant lands" (just not-sure where, yet) when we retire, in about 600 Days!
Thanks to everyone who has posted answers so far, too! Y'all are making the "transition" that much easier!
...
I do wish you the very best of luck in leaving CA behind you. I'll be in the same boat as you are moving to a neighboring state of Tennessee. Personally, I can't wait to get away from CA.
As I see people posting on how to cut the ties to CA due to taxes I can't help but think this is what corporations and people are doing when they leave the US.
A company will relocated it's HQ and restructure.
Individuals will give up their citizenship.
All because even when you leave the entity still wants you to feed it.
My cousin gave up her US citizenship last year. It was due to the IRS changes and she was having problems with her bank and other financial institutions. She never worked a day in the US yet every year had to file income tax.
She was also worried about real estate dealings in Europe because if she made a profit she'd have to pay cap gains to the IRS.
I wonder if other states will try to do what CA does regarding taxes even when you leave.
I do wish you the very best of luck in leaving CA behind you. I'll be in the same boat as you are moving to a neighboring state of Tennessee. Personally, I can't wait to get away from CA.
... Seems like there are quite a few of us, marino760 ... "Th' Golden State" has pooped in its mess kit so far as I'm concerned, and I'm not stickin' around to pay for it to be cleaned-out! ...
... To those who think Cali is (still) Heaven-on-earth: It's all yours, baby! ...
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