Tuesday, November 12, 2019
Following up on my previous post, NY Times: The Next Trump Legal Battle — Claiming Florida As His Legal Residence; 'It’s Hard For Mr. New York to Disavow His Residency':
Wall Street Journal Tax Report, Not So Fast, Mr. Trump! Relocating to a Low-Tax State Is Hard to Do:
The President joins a long line of wealthy people who have left high-tax states like New York, Connecticut and California for low-tax states like Florida, Texas or Nevada. Among the latest is billionaire Carl Icahn, who has announced that he’s leaving his native New York for Florida.
The tax differences are clear. Florida, Texas and Nevada have neither income nor estate taxes, while New York and Connecticut have both. California doesn’t have an estate tax, but its top statutory income tax rate is the highest in the nation: 13.3%.
For Americans considering similar moves, and for Mr. Trump himself, tax specialists have a warning: Be careful, because states left behind can subject leavers to intrusive audits and sometimes lawsuits that drag on for years.
Forbes, Tax Lessons From Trump’s NY to Florida Move…For Californians:
Many sources are rightly wondering if the President’s departure from New York for tax purposes may not be so simple. Tax disputes about state residency are very common, and in this case, it is extremely likely that the President will face a fight over his move. Of course, who wouldn’t want to bask in Florida’s zero state income tax? For anyone trying their own version of President Trump’s tax move, consider these points.