Category: Individual and Business Tax Consulting
States go to great lengths to claim a person as a resident for tax purposes, but there is a difference between your residence and your domicile, which may be in a different location. This article discusses the steps that you can take if you are looking to establish your domicile in Florida.
While the term “residence” refers to the location where you physically live at the moment, “domicile” refers to the status of being a permanent resident in a particular jurisdiction. A person can remain domiciled in a jurisdiction even after they have left it, if they have maintained sufficient links with that jurisdiction or have not displayed an intention to leave permanently.
Below are steps that you can take if you are looking to establish your domicile in Florida. However, no one step will automatically guarantee you success in changing your domicile for tax purposes. In the final analysis, your domicile is a subjective matter, based on the documentation and analysis by the state.
Some other steps that may be taken include the following:
You must be aware that your former state may still try to claim you as a resident, even if you have done all of the items suggested above. Recent cases in New York, Connecticut and other northern states have shown that states go to great lengths to claim a person as a resident for tax purposes. Primary guidelines by these states may include housing, business, time, near and dear possessions and a family factor. We strongly recommend that you obtain advice from a CPA and/or attorney to assist you in doing everything possible to avoid remaining a resident for income, estate or inheritance tax purposes.
We would be happy to assist you with any of your questions. Please contact a Kerkering Barberio professional tax advisor at 941-365-4617.
Our firm provides the information in this website post for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Articles posted on our website are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.