car registration and temporary residency (Cambridge: apartment, rent, credit)

[montecoretiger]

I am living in Cambridge for one year for business reasons. I am not a long-term resident, my income is paid by my home state (CA), I own a house in CA etc. Basically I am only here temporarily for a predetermined length of one year. However, I just found out that in order to get a resident parking permit for Cambridge (which I'll need to park my car near the apartment I'll be renting), it's mandatory to switch my car registration and plates to MA. I'm confused about this policy (since I'm not actually a real resident here), and concerned that will affect my tax status in some weird way, particularly since I am otherwise able to deduct a lot of my living expenses here in MA as business travel expenses. If my car is registered in MA doesn't that mess everything up? But if I don't register my car, I can't get a parking permit to be able to park in front of my place -- does anyone have any advice about this?

[miu]

Will your job rent you an off street parking space? Or what about leaving your car behind and signing up with Zipcar?

How often will you need a car and where will you be going?

[smarty]

This site may help.
CIS: Welcome to Massachusetts!

You may want to consult a tax accountant.

My understanding is if you live in MA say for 6 months and get paid in MA, then you have to pay taxes for both state (MA & CA). If not, I do not think MA would require you to file taxes just because you register your car here. They do not know how much you're getting paid (from income tax point of view.) As to what expenses you can deduct.. I have no clue.

[montecoretiger]

that's not the issue exactly. i think my income will not be MA income, because even though i am living in MA the salary is paid from my place of work in CA.

we've already brought the car here (we moved here by driving), so it's too late to decide to leave the car behind. plus my partner may need it for his work commute.

the tax concern is about primary residency. if i am visiting MA as part of a business trip, even if it is a yearlong trip, i can deduct things like my rent here as business travel expenses, because this is not my primary home, and i am here temporarily for business reasons.

the concern is that if i register my car here that might change my temporary / visiting status for tax purposes.

[holden125]

Originally Posted by montecoretiger

that's not the issue exactly. i think my income will not be MA income, because even though i am living in MA the salary is paid from my place of work in CA.

we've already brought the car here (we moved here by driving), so it's too late to decide to leave the car behind. plus my partner may need it for his work commute.

the tax concern is about primary residency. if i am visiting MA as part of a business trip, even if it is a yearlong trip, i can deduct things like my rent here as business travel expenses, because this is not my primary home, and i am here temporarily for business reasons.

the concern is that if i register my car here that might change my temporary / visiting status for tax purposes.

Residency: normally you're a MA resident for tax purposes if you spend more than 183 days of the year in MA AND you have a "permanent place of abode" in MA. If you are coming for a specific purpose and it's not to exceed a year, you will likely be deemed not to have a "permanent place of abode" in MA. That means you won't be taxed as a MA resident. Check out the last bullet point under "permanent place of abode" and Example 2 below that on this link. Just make sure it's under a year, even if by one day.

Residency Status

However, if you perform the work in Mass. it's subject to Mass. income tax no matter where you reside or where the employer signing the checks is located. You'd file a MA non-resident return and should get a credit on a CA return for any taxes paid to MA.

The city of Cambridge, however, has authority to set its regs for parking permits and can require the car be registered at that address to qualify. Given your lack of a "permanent place of abode," I don't believe registering the car in Mass. would change your tax status. You can point to your home in CA, the temporary nature of your stay in Cambridge, and the reason for registering the car in MA (to be able to park the damn thing).

About deducting your expenses for a yearlong business trip, I agree that you should consult an accountant. I just don't know and wouldn't want to speculate.