Eric Witte wrote:

- quote -

Keeping the residence in Texas may be important, but what is
done with it in the interim is going to matter. If you have
a tenant sign a five year lease, you may have a problem.
However, if it were to sit vacant and you had substantially
less luxurious accommodations in Arizona, you might convince
a judge that you didn't have residence in the state.

Of course, reality is that your *earned* income will be
taxed to Arizona. The key issue is whether your investment
income will be taxed by Arizona.

--
Ed Zollars, CPA
Phoenix, Arizona

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- quote -

With maybe 40% of my income going to a mortgage and property
taxes in Texas it should count

Eric

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Eric Witte wrote:

- quote -

No, that's not what the law says. It says if you are here
more than 9 months, the *presumption* becomes that you are a
resident. But it says nothing about what is implied by a
shorter stay.

Rather, the law simply states that if you are here for other
than a temporary or transitory purpose, you are a resident
for income tax purposes. The fact that the state wouldn't
get the automatic presumption for 2004 doesn't mean they
wouldn't carry the facts and circumstances case.

As was noted in the case I referred to, the issue of intent
is crucial here and your intent will be inferred based by
the courts based on your actions. If you move to Arizona,
are here only one month in 2004, but have no definite plans
to return home (just a vague idea you'll go back to Texas
"some day"), then you are a part year resident for 2004.

--
Ed Zollars, CPA
Phoenix, Arizona

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- quote -

So I could probably get away with it if I'm only there for 3
months this year? Next year I for sure would be classified
as "resident."

Eric

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Mark Rigotti, CPA wrote:

- quote -

Technically it is *possible* to be in Arizona more than the
9 month statutory presumption and still be a
nonresident--but it's going to take some rather clear facts
that you are returning to Texas. And that likely means
having a concrete date on which you plan to return, not just
some vague concept that once you are "done" with this job
you'll go back <grin> .

What the statutory presumption essentially does is put the
taxpayer on notice that you'd better have a crystal clear
case to show you aren't an Arizona resident if you stay
longer than nine months. And the practical issue is that if
the "other state" is Texas, Nevada, Washington, etc. (states
without an income tax), the courts are likely to even more
skeptical about the claimed residency.

--
Ed Zollars, CPA
Phoenix, Arizona

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"Eric Witte" <ewitte[at]hotmail.com> wrote:

- quote -

All the states that I know of that have an individual income
tax impose a tax on non resident income earned in their
state. However, based on your post I would suspect that a
few years exceeds the AZ statute for defination of
residency. In Michigan it is 183 days.

By taking this job you are changing your tax home from TX to
AZ. This would be my take with out any research.

--
Regards,

Mark Rigotti

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Eric Witte wrote:

- quote -

Well, one thing you should be aware of--if you work in
Arizona and have income from Arizona, you *will* be liable
for Arizona income taxes even if you are not considered a
resident of Arizona. The primary impact of being considered
an Arizona resident would be the taxation of other income,
as a resident of Arizona would owe tax on all income from
all sources, while a nonresident owes Arizona tax only on
Arizona source income (that is generally true for all states
that impose an income tax).

Arizona Revised Statutes Section 43-104(19) defines a
resident as:

" 19. "Resident" includes:

(a) Every individual who is in this state for other than a
temporary or transitory purpose.

(b) Every individual who is domiciled in this state and who
is outside the state for a temporary or transitory purpose.
Any individual who is a resident of this state continues to
be a resident even though temporarily absent from the state.

(c) Every individual who spends in the aggregate more than
nine months of the taxable year within this state shall be
presumed to be a resident. The presumption may be overcome
by competent evidence that the individual is in the state
for a temporary or transitory purpose."

As noted, the ultimate test is whether you are in Arizona
for other than a "temporary or transitory purpose"--if you
are, then you are an Arizona resident. And if you reside in
Arizona for more than nine months, you are *presumed* to be
a resident.

There was a case decided in the past year on this issue
(Kocher v. Arizona Department of Revenue), and Texas was the
state in question. Now the taxpayer did a *lot* of things
wrong <grin> , but the opinion has a good discussion of what
makes a taxpayer an Arizona resident.

You can read the opinion at:

http://www.cofad1.state.az.us/opinio...X/TX030002.pdf

--
Ed Zollars, CPA
Phoenix, Arizona

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ewitte[at]hotmail.com (Eric Witte) wrote:

- quote -

Jut because it worked for the first President Bush (who
successfully maintained, to the disappointment of the Maine
tax collectors, the claim that his home was an unbuildable
lot in Houston) doesn't mean it will work for you ;-)

Your Arizona-source income is taxed by Arizona, even if you
are a nonresident.
http://www.revenue.state.az.us/faqs....%20Nonresident

--
Chris Green

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I live in Texas at the moment. Texas does not have state
income tax. There is a possibility that I may work in
Arizona for a few years. I'm planning on keeping my house in
Texas and leaving it listed as my permanent residence. And
car, phone, etc. Mainly because I will be back. All of my
family lives here. How does Arizona define residence for
tax purposes?

Eric

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