Oceanside the only logical choice? (San Diego, Orange: short sale, 2015, foreclosure)
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I looked in San Marcos and that just felt too far away from the ocean.
Be realistic with your neighborhood then. Living anywhere other than the downtowns/beachfront neighborhoods will mean the same commute to the beach and struggle to find parking. The majority of Carlsbad, Oceanside, and Encinitas is east of Interstate 5 and these areas are mainly suburban sprawl, not tight knit beach towns.
There's a reason why houses in Encinitas are 2X or more the cost of homes in Oceanside. Encinitas is a more upscale area, it has better schools, and its closer to San Diego.
If you are looking to settle long-term and you have the money then sack up and fork out the dough for Encinitas or Carlsbad. If this is more of a short-term investment then I don't know...maybe Oceanside is a better "deal".
California RE is very expensive compared with OKC. Since you have been out here to visit before and now want to move - you have probably figured out why that is the case. There's always a reason why people are willing to pay a lot more for housing.
This is definitely a long term situation. When I went to Carlsbad we looked at Bressi Ranch, which is more in line with our current home. We also looked at the Enclave in Buena Vista. Again, many of these houses were more than double Oceanside prices.
Maybe I have to look at it from more of an investment standpoint than just a housing viewpoint. Another big reason I like the $400k price tag is the mortgage will be on a 15 year note;I refuse to buy any home on a 30 year note. Oceanside certainly didn't seem as nice as Carlsbad or Encinitas, but then again it was double the cost. I am just trying to justify the higher sticker price in my mind. It's just a big decision and I want to think of all the variables in play.
I spoke with my CPA about this a few months back. That is the beauty of my situation. As long as I get my K1 and the source of the income is from Oklahoma that is where I will pay my taxes to. Oklahoma has a rate of 5.25 and they are trying to reduce it further according to the Governor. California is in the 13% range.
However, my girlfriend will be paying the 13% tax rate on her nursing salary.
I think you might want to confer with another CPA and/or a SALT attorney.
"A California resident is any individual who meets any of the following:
Present in California for other than a temporary or transitory purpose.
Domiciled in California, but located outside California for a temporary or transitory purpose.
Domicile is defined for tax purposes as the place where you voluntarily establish yourself and family, not merely for a special or limited purpose, but with a present intention of making it your true, fixed, permanent home and principal establishment. It is the place where, whenever you are absent, you intend to return.
For a complete definition, refer to "Meaning of Domicile" in Publication 1031 - Guidelines for Determining Resident Status."
While there isn't a definitive black and white logic tree, the PDF above lists factors. The FTB has every incentive to interpret the factors in their favor and go after high income people with CA connections. Do a bit of Googling and you'll see what I mean.
Based on what you said, you will absolutely qualify as a resident of CA (most likely also qualify as domiciled in CA) and as such ALL income, not that just that from CA, will be taxable at CA's state income tax rates. If you make mid six figures, this means a marginal rate of 11.3 or 12.3% or pretty easily $30K+ more in annual state income tax. Plus interest and penalties if you don't pay on time.
Definitely good to look from investment standpoint. A good choice could get you a second house if you want your kid in a better high school down the road.
"A California resident is any individual who meets any of the following:
Present in California for other than a temporary or transitory purpose.
Domiciled in California, but located outside California for a temporary or transitory purpose.
Domicile is defined for tax purposes as the place where you voluntarily establish yourself and family, not merely for a special or limited purpose, but with a present intention of making it your true, fixed, permanent home and principal establishment. It is the place where, whenever you are absent, you intend to return.
For a complete definition, refer to "Meaning of Domicile" in Publication 1031 - Guidelines for Determining Resident Status."
While there isn't a definitive black and white logic tree, the PDF above lists factors. The FTB has every incentive to interpret the factors in their favor and go after high income people with CA connections. Do a bit of Googling and you'll see what I mean.
Based on what you said, you will absolutely qualify as a resident of CA (most likely also qualify as domiciled in CA) and as such ALL income, not that just that from CA, will be taxable at CA's state income tax rates. If you make mid six figures, this means a marginal rate of 11.3 or 12.3% or pretty easily $30K+ more in annual state income tax. Plus interest and penalties if you don't pay on time.
He said since the source of the income is from the state of Oklahoma then they have the right to claim it. It must be setup on a K1 and all income must be derived from Oklahoma. This guy has one of the biggest CPA firms in the entire state, so I trust his advice. He has served me well the past 7 years. Also, I owned property near Breckenridge, CO and they wanted to try to do the same thing and it didn't work out for them.
I spoke with my tax CPA over lunch today and he basically said everything is dependent on how the company is legally structured. if the company(s) are flow through entities or a sole proprietorship the individual will ultimately file a return in both CA and the state in which the business(es) operate. They will pay taxes on both returns and receive a credit on the CA return in the amount of tax paid to the state in which the company operates to mitigate the effects of double taxation. Ultimately CA expects their cut of taxes if the individual is a full time resident of the state.
I spoke with my tax CPA over lunch today and he basically said everything is dependent on how the company is legally structured. if the company(s) are flow through entities or a sole proprietorship the individual will ultimately file a return in both CA and the state in which the business(es) operate. They will pay taxes on both returns and receive a credit on the CA return in the amount of tax paid to the state in which the company operates to mitigate the effects of double taxation. Ultimately CA expects their cut of taxes if the individual is a full time resident of the state.
The hook that is going to get OP is the first logical test CA applies: "Present in California for other than a temporary or transitory purpose." Moving one's life and family to CA will surely trigger that condition; when that happens you are considered a resident. CA residents pay state income tax on all income, regardless of its source.
The example of owning property in CO is different because a) states vary in both their definitions and their aggressiveness in applying such definitions and b) the language used suggested it was a vacation home or other non-primary residence (i.e., 'home' was OKC or somewhere else).
The average home price in Encinitas is about 800,500 and up. I think you could find a home east of the 5, you're still really close to the beach. And it's certainly not suburban sprawl by any means...enc is getting to be quite urban in a lot of ways. You might also check out leucadia and Carmel valley.
If one of you is actually going to pay 13%, you must be in an extremely high tax bracket, meaning income won't be an issue at all.
At the lower end, there's less of a difference between here and Oklahoma, since Oklahoma's top bracket kicks in pretty quickly, whereas California's doesn't. Someone with a nurse's salary is going to make some good money without coming anywhere close to the 13% bracket. If your girlfriend is going to pay 13%, then you're clearly not hurting for money, so you can afford either a nice house in Oceanside plus a private school or whatever house you can find in Carlsbad or Encinitas.
I'd just think of it this way: Oceanside is a lot nicer than anywhere I've seen in Oklahoma, so you really can't go wrong.
Oceanside has some OK areas, but also some areas that have some gang and drug issues (seeL UnitedGangs.com | Tag Archive | Oceanside gangs) The transition between these areas can be razor thin and not apparent from Zillow listings. So, do be careful about where the houses are located and do your homework.
Aside from that, there's an old saw: you get what you pay for. I'm as thrifty as anyone, but some things are worth paying a little more for, and to me, better schools for my kids is one thing worth paying more for. You asked if there are schools in Oceanside that would be "good enough" for your son. That depends on what you consider to be "good enough" school for your son.
Obviously, you'll want to carefully compare schools when looking at homes. Here's a tip: Don't just look at the local elementary school serving a particular area -- you want to buy into a neighborhood where your son will get a great (not just"good enough") education from K through 12. This is particularly true in California where there can be major differences in educational quality between districts and elementary schools feed into particular middle schools which then feed into particular high schools.
One starting point to research schools is the San Diego County school API index, where you can get a quick overview of the differences between different schools. Here's the link for the latest API data: http://api.cde.ca.gov/Acnt2013/2013G...t=37,SAN,DIEGO (On the same website you can also get three year running data reports as well as information about the economic and racial demographics of each school by clicking on the school's link)
You might find it a helpful exercise to compare the API scores of the schools in the Oceanside School District with those in other parts of the County, including Encinitas/Cardiff.
However, API scores aren't going to give you the full picture. For that, dig deeper -- each school from elementary through high school is required to put together an Academic Report Card which will give you some additional stats.
As a retired high school counselor, I also recommend that parents ask the high school that their children will attend down the road for a copy of its college Profile. This is a report that most high schools prepare for college admissions officers. It will usually tell you things like how many students go on to four year colleges (and which ones), the demographics of the high school, and the strength of the curriculum offering (i.e., Advanced placement courses, college entrance scores).
I don't have knowledge of all of the elementary schools in Oceanside, but I do have some familiarity with the high schools, as I've worked with students from both of them as a private college admissions counselor. Oceanside, El Camino High School is decent but not an academic powerhouse. Oceanside High School is less so, and has some other issues to look carefully at. While both of these high schools are trying to improve, and definitely have improved in recent years, they still have a long way to go to reach the same level as the "best" high schools in the County.
If you're willing to pay for private schools and schlep your son to them from Oceanside, local public schools may not be as much of a consideration, although it will still affect your return on investment. However, even if you're thinking of private schools for your son, private school options aren't plentiful in Oceanside. Many of the best private schools in the county worth considering are down towards La Jolla/Del Mar. So, even if you're thinking of private schools for your son, being located slightly down the coast might make life easier for your family in the long run.
Just a few things to think about and research -- good luck with planning your move!
Last edited by RosieSD; 09-21-2015 at 04:13 PM..
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