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Old 09-22-2015, 02:58 PM
 
Location: 42°22'55.2"N 71°24'46.8"W
4,848 posts, read 11,753,596 times
Reputation: 2961

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Quote:
Originally Posted by 1AngryTaxPayer View Post
A lot of people that bought at the height of the market walked away and many of those wish that they hadn't because their home values are back to where they were when they walked. I know a couple who cleaned out their 401ks as a down, had problems getting a custom home built and "walked away". A zilla view of the place shows it's worth more now than when they walked. So basically they just P****ed away a few hundred grand.
EXACTLY. I always tell my clients not to sell their stocks when they see the stock market drop. Instead, they should buy MORE stocks. My clients with the highest returns are always the ones who listen to me. The ones who panic and sell just complain some more. It's funny how the smartest people often make the stupidest financial decisions. Too many people follow their emotions and not their brain.
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Old 09-22-2015, 03:00 PM
 
771 posts, read 829,066 times
Reputation: 823
Quote:
Originally Posted by Parsec View Post
I'm a CPA, but not in CA so I am not going to comment on whether he owes taxes to CA or not. Regardless of whether the OP has to pay state taxes to CA, the highest he will be taxed is at the 13% rate for CA. Worst case scenario is he will file a tax return in both OK and CA, but on his CA return he can take a dollar for dollar deduction for whatever he paid to OK.

OP: Are you planning on sending your kids to private school? I understand the idea of being wealthy and frugal, but purchasing a house for the long-term is not an expense. You can think of it more as a conservative investment that will yield a small return each year if you hold it for say, 15 years. Houses in towns with the best school districts always appreciate at a faster rate than lower-performing school districts.
I don't think anyone was saying he might get "double taxed" on state income. Just that he could end up paying 6-8% more on his marginal rate -- the equivalent of more than doubling his current state tax expense -- which is a significant amount of money at say $700K/year. The 6-8% could go even higher if he fails to pay owed CA taxes for a number of years and accrues penalties and interest.

If OP is contemplating spending 2 or 3 times more to live in California, there is certainly an opportunity cost. It may not all be an expense in a pure accounting sense, but at the end of the day (or 15 or more years) it certainly will mean less net worth. If he could get a real 7% from a standard investment portfolio or perhaps even higher from putting the extra money back into his business, the difference could be substantial. OTOH, if all his net worth is tied up in his businesses, some diversification would be good, although again I would argue a very expensive primary residence would be at least a handful of notches down the list.

To be clear, I'm operating under the premise that moving to SD is not a requirement. There's no job transfer or huge promotion available if he moves. If moving to SD is a requirement, then I do agree that a higher initial price tag to get in a more desirable area could be worth it.
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Old 09-22-2015, 03:17 PM
 
96 posts, read 127,556 times
Reputation: 119
I have co-workers who live in Oceanside and love it. Well educated, high income professionals. Type of people many would think they should settle on nothing less but Del Mar. But they choose to live in Oceanside and like that town. Oceanside is not all ritzy but it is also not all ghetto. It is a normal town which is still relatively affordable by Southern California standards.

Re: schools: You may also look outside of public school system and research options with private schools. There are a few good one in vicinity.

Good Luck!
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Old 09-22-2015, 03:56 PM
 
Location: San Marcos, CA
674 posts, read 606,590 times
Reputation: 792
Quote:
Originally Posted by L-Costa View Post
I have co-workers who live in Oceanside and love it. Well educated, high income professionals. Type of people many would think they should settle on nothing less but Del Mar. But they choose to live in Oceanside and like that town. Oceanside is not all ritzy but it is also not all ghetto. It is a normal town which is still relatively affordable by Southern California standards.

Re: schools: You may also look outside of public school system and research options with private schools. There are a few good one in vicinity.

Good Luck!
Do you recommend any schools in particular?

I'm trying to keep all of my options open for when my kids need to go to school, especially if I can't get them into my first choice.
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Old 09-22-2015, 04:55 PM
 
5,151 posts, read 4,486,342 times
Reputation: 8346
Quote:
Originally Posted by OwlAndSparrow View Post
Do you recommend any schools in particular?

I'm trying to keep all of my options open for when my kids need to go to school, especially if I can't get them into my first choice.
For public school, look into Guajome Park Academy, it's a charter school in Vista that is now K-12. You do not need to be in VUSD. I utilized it for middle school years when private school was no longer affordable & I didn't want my daughter to have to deal with overcrowded public middle schools during those very transitional years. She & the friends she made there, all became successful professionals. The school has grown a lot since then, but still seems consistently good.
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Old 09-22-2015, 07:21 PM
 
2,382 posts, read 5,374,275 times
Reputation: 3466
Quote:
Originally Posted by RosieSD View Post
You may find the city of Oceanside's crime statistics mapping site helpful. However, keep in mind that the most recent data is more than six months old. City of Oceanside, California - Crime Statistics

I don't think anyone hates Oceanside. It's just that as locals, we're used to hearing about crime in Oceanside in our local media, and so we tend to be cautious about the city and have a hard time wrapping our head around the idea that someone who could afford a little more would choose Oceanside. That said, as I mentioned in an earlier post, Oceanside does have some nicer areas - Ivy Ranch, for example - but you'll pay more for those areas.

The suggestion to do a search here for other posts about Oceanside is a good one. I'd also suggest going to Google News and doing a search for "Oceanside crime" if safety is a concern. Again, there are nicer areas in Oceanside, but you need to know the lay of the land and not just make choices based just on price.

Vista has it's own share of issues so be sure to do the same for Vista. This is just my personal preference and your mileage may vary, but if I was willing to go a bit inland, I'd lean towards San Marcos over Vista, even if I had to pay a little more.

And, it may be to your benefit to have your girl friend find a job here before you commit to a particular part of the county. The major hiring hospitals are going to be towards the central part of the county so the extreme northern part of the county may not work best for her.

Overall, I think there's a danger in becoming too set on a specific area so far out from your move. I like that you're planning ahead and trying to put check marks in all of the right boxes. But, At this point, maybe exploring all options is the best choice -- you might be surprised to find something you like even more. Some other areas you might check out would be Poway, La Mesa, Rancho Penasquitos, Claremont Mesa, Chula Vista/Otay Ranch -- don't rule anything out just yet. You may be surprised to discover an area you hadn't considered before will fit the bill nicely.

Good luck with your planning!
I don't think you are going to find a 2000 square foot house for 400K in any of the areas you listed. I know it's not going to happen in Otay Ranch/Eastlake because we have been looking in that area.

This is the ONLY house that comes up under 425K , 2000 square feet and it's not "promising"

https://www.redfin.com/CA/Chula-Vist...3/home/6213271

$459k gets you this

https://www.redfin.com/CA/Chula-Vist.../home/21901661

So newer but no yard at all, parking limited to your own garage. But the bigger problem is that the mello-roos and HOA fees for this place tack another $480 dollars a month. So 6K a year in addition to the 1.1845 property tax.

460K/1800 square feet gets you this
https://www.redfin.com/CA/Chula-Vist...3/home/6566129

but again - 300+ extra a month in mello roos and HOA
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Old 09-22-2015, 09:57 PM
 
Location: Temecula, CA
60 posts, read 80,553 times
Reputation: 48
Okay, to all those who asked about the tax situation. I talked to a California CPA today and he had a lot of wisdom. However, I found this deal today and I want to run this by him. It looks like there may be a way to get around such high California State Income tax if you play the game right. And yes.. it is legal. I will e-mail it to the California CPA I spoke with today and see what he thinks. Just click on the blue Forbes link for the article. I would like to know what others think, too.

Forbes Welcome
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Old 09-22-2015, 10:10 PM
 
Location: Temecula, CA
60 posts, read 80,553 times
Reputation: 48
Quote:
Originally Posted by Bakeneko View Post
I don't think you are going to find a 2000 square foot house for 400K in any of the areas you listed. I know it's not going to happen in Otay Ranch/Eastlake because we have been looking in that area.

This is the ONLY house that comes up under 425K , 2000 square feet and it's not "promising"

https://www.redfin.com/CA/Chula-Vist...3/home/6213271

$459k gets you this

https://www.redfin.com/CA/Chula-Vist.../home/21901661

So newer but no yard at all, parking limited to your own garage. But the bigger problem is that the mello-roos and HOA fees for this place tack another $480 dollars a month. So 6K a year in addition to the 1.1845 property tax.

460K/1800 square feet gets you this
https://www.redfin.com/CA/Chula-Vist...3/home/6566129

but again - 300+ extra a month in mello roos and HOA
That first one is awful. The second one is doable, but feels a little small. The last one is only 1,800 sq feet and if we ever grew as a family I would probably feel forced to move. Ugh.. this is hard.

Like another poster said, I don't want to be married to a location just yet. I spoke with my girlfriend this evening and she said she is willing to use her RN status to work at a Dr's office, Hospital, Nursing Home, Urgent Care, Surgery Center.. etc. She said she didn't really care as long as she was getting to help people and it didn't have to be a Hospital. That certainly makes our living arrangements more flexible.
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Old 09-23-2015, 08:12 AM
 
771 posts, read 829,066 times
Reputation: 823
Quote:
Originally Posted by tycoon85 View Post
Okay, to all those who asked about the tax situation. I talked to a California CPA today and he had a lot of wisdom. However, I found this deal today and I want to run this by him. It looks like there may be a way to get around such high California State Income tax if you play the game right. And yes.. it is legal. I will e-mail it to the California CPA I spoke with today and see what he thinks. Just click on the blue Forbes link for the article. I would like to know what others think, too.

Forbes Welcome
There's a wealth of info here: https://www.ftb.ca.gov/aboutFTB/manu.../rstm/3000.pdf . I read most of the 158 pages yesterday for fun Trusts are discussed in several places and the gist seems to be that simple trusts are subject to standard income source rules while implying other trusts may not be. However, all this is under "nonresident" sections. You are going to be resident for sure; I think the second you take any form of money from the entity to a personal bank account, CA gets their slice. So the only way I think this could work is if you set up a "non simple" trust and that trust directly pays all your expenses. Depending on your org type(s), you may be required to pay yourself a reasonable salary, which will surely be subject to CA tax at the least.

Let us know what your CA CPA says.
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Old 09-23-2015, 08:41 AM
 
Location: American West
1,082 posts, read 825,718 times
Reputation: 2090
So let me get this straight. You want to move to CA, find the cheapest housing, find the best schools for your kid, make all of your money out of state, use CA resources and have the "perfect life", but pay Okie taxes because your business is in OK? And you aren't living there or using their resources, but they get your tax money because you don't want to pay the 13%? Um, ok...let me make sure to lay out the welcome mat for you. If I am wrong, please tell me because this is the sort of problem our state faces. Not enough people want to pay their way because "it's too expensive". In short, people don't want to pay to play.

And yes, don't come to Oceanside...it is terrible and dirty and the crime is way high.

Have you thought about Hawaii for your beach dreams? They welcome mainlanders and their high income.
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