Setting up a domicle-Need advice

[psurich]

We currently live in Kansas and will be going full time in our RV. We plan to sell our home but have not done so yet. How soon can we switch to a mail-forwarding address in SD, FL or TX? How soon can we switch our vehicle registrations? Can we obtain our drivers licenses in our new state before we actually sell our house?

[NCC-1701]

Good information and advice. Thank you.

After reading through the responses here, I did a search on my home state. Having the majority of "activity" outside of the state is, as suggested here, paramount in changing "domicile."

http://www.revenue.state.mn.us/individuals/individ_income/Pages/Domicile.aspx

FAQ's

[allen8106]

kerrlakeRoo wrote:
Since you are going to a no income tax state from a tax state, they could consider that an avoidance issue. I dont know how aggressive Kansas is, but some states are rather demanding of their coin. Also, the question of insurance I would think could present a problem. If you still reside in your old state, registered and insured your vehicle in another, could there be an issue if you were to file a claim or be involved in a collision?
I think, I would wait until you had a signed contract on your home, so if something did occur, you had evidence of your intentions and the move being in good faith.

The trick to making this successful is to move EVERYTHING. Bank accounts, auto registrations, voting registration, mail etc. etc. When you move everything this shows intent to "move". If you move some things but not all this implies avoidance which could be an issue.

I've also read it's best to set up up your domicile in the eastern side of the state because insurance rates are cheaper in that area of the state.

[Ro_n_Joe]

Of the 3 states you mention, if you're under 65 yrs of age, I believe FL is the only state offering PPO Managed Care coverage.

[Clay_L]

TenOC wrote:
I set up my SD address 6 months before I moved out of the house into the TT. That way I had time to make sure all my mail was sent to the SD address.

SNIP.

Six months in advance is a good idea. I did that and found I had forgotten a few places I didn't get mail from often - like the IRS and airline frequent flier programs.

[Clay_L]

kerrlakeRoo wrote:
Since you are going to a no income tax state from a tax state, they could consider that an avoidance issue. I dont know how aggressive Kansas is, but some states are rather demanding of their coin. Also, the question of insurance I would think could present a problem. If you still reside in your old state, registered and insured your vehicle in another, could there be an issue if you were to file a claim or be involved in a collision?
I think, I would wait until you had a signed contract on your home, so if something did occur, you had evidence of your intentions and the move being in good faith.

Changing his mailing address does not affect his domicile in Kansas.

[Bill_Satellite]

See, I said you needed to educate yourself! It appears the taxes I paid when we lived there have been repealed.

When Jeb Bush was elected governor in 1998, one item in his platform was to repeal this tax, which he called the “seniors and savers tax.” He bargained with the legislature to reduce the rate and to eventually repeal the tax in 2008. The nonrecurring two mill tax on the recording of mortgages remains.

[Dance_Chick]

Bill.Satellite wrote:

Dance Chick wrote:

Bill.Satellite wrote:
Just be careful of the FL Tangible Personal Property Tax. Ensure you understand what it is and how it might effect you.

Unless you're going to run a business in FL, it doesn't apply.

It would still apply to your personal income and saving (outside of an IRA).

With all due respect, individuals do not pay a tangible personal property in FL. One must be a proprietorship, partnership, corporation, contractor, etc. to file a return and pay a tangible personal property tax.

[2gypsies1]

Here's a good article that was in the Escapees magazine on domicile:

http://adventure.1tree.net/index.php/rv-living/lifestyle/how-to-choose-a-full-time-domicile

[Bill_Satellite]

Dance Chick wrote:

Bill.Satellite wrote:
Just be careful of the FL Tangible Personal Property Tax. Ensure you understand what it is and how it might effect you.

Unless you're going to run a business in FL, it doesn't apply.

It would still apply to your personal income and saving (outside of an IRA).

[Michelle_S]

We have changed from New York to Florida a few years ago. We are not 100% Full Time, but do spend approx 9 months a year in our RV. We still have property and house in Western New York, but is now insured as a Seasonal Residence, which we use as a home base when North for the Summer.
We made the switch to a Mail Forwarding service long before chancing domicile an use it as the billing address for everything.

[TenOC]

There is a difference in residence and domicile. Think of a college student who lives (residence) out of state. Since he plans to return home after college and during the summer, his domicile (tax home) does not change.

Google to better understand the difference.

[Dance_Chick]

Bill.Satellite wrote:
Just be careful of the FL Tangible Personal Property Tax. Ensure you understand what it is and how it might effect you.

Unless you're going to run a business in FL, it doesn't apply.

[Bill_Satellite]

Having a house in KS does not make you a KS resident. If you leave KS and rent the house you can become a resident of any State you like. FL, TX and SD are the most popular but I would choose FL as there are very low costs to register the RV and ongoing yearly registration is much lower than TX or SD. I just renewed my TX tags for car and RV and it was over $500. I believe it was around $100 in FL. Just be careful of the FL Tangible Personal Property Tax. Ensure you understand what it is and how it might effect you.

[2gypsies1]

You can set up your mail forwarding at any time and just have your mail forwarded to your present home. I'd wait until the house is sold and you're on the road to register your vehicles and get the driver's license and register to vote. You're still considered a Kansas resident. Mail forwarding doesn't change that.