David Moore wrote:

- quote -

You should be aware that residence is defined differently in
different states but, also, can be different concepts for
tax and legal purposes.

Registering to vote, etc. may be important for legal
residence determination but can be irrelevant for tax
purposes. What is important, taxwise, is your "tax home."
Essentially,this is a facts and circumstances determination
based primarily on where the business is conducted.

In your case, I think it could be argued that Indiana is
your tax home, even if you do spent a significant amount of
time in Florida. You need to review this issue with a
professional advisor who is familiar with the issues and who
can examine all the facts involved.

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dsmoore[at]stat.purdue.edu (David Moore) wrote:

- quote -

It really doesn't matter what FL thinks, unless you have
enough intangible assets to be subject to its intangible
property tax. What matter is what IN thinks.

IN defines a resident as a person who is domiciled in
Indiana, or who maintains a permanent place of abode in IN
and spends more than 183 days of the taxable year there. So
your FIRST requirement is to change your DOMICILE from IN to
FL. THEN you will be a nonresident of IN as long as you do
not spend more than 183 days of any taxable year in the
state.

You can be a resident for tax purposes of more than one
state at the same time, but you only have one domicile at a
time. That doesn't stop two states from taking different
positions as to which is your domicile <G> . Your domicile
is your true, fixed home and permanent establishment; the
place to which, whenever absent, you intend to return. Such
ties as voter registration, driver's license, use of
professional services (doctors, lawyers, accountants, etc.),
maintenance of items "near and dear" (keepsakes, antiques,
heirlooms), banking and other financial relationships, and
so on are indicia of domicile, but none by itself is
necessarily determinative.

Assuming you started out in Indiana and acquired the FL
residence at some later time, your domicile is in Indiana.
In order to change domicile, generally you must meet all of
three requirements: (1) abandonment of the previous
domicile (physically moving away from it); (2) moving to
and residing in a new location; and (3) intending to remain
in the new location permanently or indefinitely. It may be
possible to change your domicile to Florida without giving
up your place of abode in Indiana, but if you want to keep
the IN residence you must sever your other ties to the state
as completely as possible. That means spending a minimum
amount of time there.

I would recommend consulting with an attorney in Indiana who
is thoroughly familiar with the Indiana tax law. It may be
possible to achieve the desired result, but there will be
risk involved.

"Everybody does it" is likely true, but it won't save you
when the tax authorities come to call. Just a word of
warning ....

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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- quote -

Not Governor Jeb. Under his influence, the exemptions for
this year have been raised from $20,000/$40,000 to
$250,000/$500,000. He is still in favor of eliminating the
tax completely. Sound familiar? (Or should I say
"family-er"?)

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dsmoore[at]stat.purdue.edu (David Moore) wrote:

- quote -

Primary residence can be a matter of judgement where one
looks at the various indicators you listed, including time
spent in each state. FL does not care, but IN will look
closely at your evidence.

As a self-employed you have additional concerns: business
licence, address, etc. And even if you spend 6+ months in
FL, the business income you earn while in IN will likely be
taxable in IN regardless of your state of primary residence.
(Just ask any athlete or performer how many states they have
to file regardless of where they live in the off-season.)

Also, if you plan to sell either house it becomes very
important which one qualifies for the exclusion of gain.
(Although both could with proper planning and timing.)

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dsmoore[at]stat.purdue.edu (David Moore) wrote in

- quote -

OH says you are a resident if you are in the state more than
180 days which do not have to be consecutive. A truck driver
who crisscrosses the state too many times could be declared
a resident for tax purposes <g> .

Check Indiana's law on residency. FL doesn't care because it
doesn't have income tax but they love to collect the
intangible tax,

Martha Matthews, EA

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We own homes in IN and FL. Being residents of FL has
considerable advantages (no state income tax, real estate
tax increases capped). But we don't want to commit to > 6
months physical residence in FL.

Both web search and talking with other split-year residents
suggests that FL doesn't insist on 6 months' presence.
Register to vote, register your car, get drivers license,
show residence by showing you own a home, and FL is happy.
- quote -

IN may be less happy if we declare FL our residence but are
physically in IN more than half the year.

If it matters, I'm self-employed, so no employer in either
state.

Before I talk to a lawyer (or two, one in each state), any
wisdom on moving legal residence in this way?

Thanks,
David

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