Factors in establishing a new domicile.Even in today's mobile society, individuals fail to recognize the importance of properly establishing legal domocile when they more from one state to another. Since a taxpayer's state of domicile state of domicile n. the state in which a person has his/her permanent residence or intends to make his/her residence, as compared to where the person is living temporarily. is entitled to tax all of his or her income, failure to abandon an old domicile can cause unfavorable tax consequences. At death, the state of domicile also can tax all of an individual's intangible assets regardless of location, as well as all property located within the state. The checklist below outlines some steps individuals can take to abandon an old domicile and clearly establish a new one. (Note: Even when domicile is clearly established, some states still try to tax a former resident's income, particularly pension benefits accumulated in the state. Residency audits often begin with an extensive questionnaire that should not be completed without a CPA's advice.) * Sell residence in old state and buy or lease a home or apartment new state. * Apply for and obtain a homestead exemption Homestead exemption is a legal regime designed to protect the value of the homes of residents from property taxes, creditors, and circumstances arising from the death of the homeowner spouse. in the new state. * Move physical assets from the old state to the new one. * Server business relationship in old state. * Close bank and brokerage accounts in the old state and open accounts in the new one. * Rent a safe deposit box A safe deposit box (sometimes incorrectly called a safety deposit box) is a type of safe usually located in groups inside a bank vault or in the back of a bank or post office. in the new state. * Have an attorney in the new state review estate plan and draft a new will indicating the individual is a resident of that state. * File an affidavit of domicile in the new state with the county clerk's office. * Register and vote in the new state. * File federal and state income tax returns as a resident of the new state, using new address. * File state tangible and intangible tax intangible tax A tax imposed by some states or local governments on the value of intangible assets such as stocks, bonds, money market funds, and bank account balances. returns, as required, in the new state. * Register automobiles in new state and get new license plates; cancel old plates. Obtain a license to drive in the new state and cancel old license. * Change the billing address on credit cards, pensions, Social Security payments and other business correspondence to reflect move to new state. * Terminate any church or temple affiliations and reestablish them in the new state. * Terminate any club membership in old state and join clubs and civic organizations in the new state, as desired. * Join the local public library. * Purchase a cemetery plot in the new state. STANLEY HAGENDORF,LLM LLM abbr. Latin Legum Magister (Master of Laws) LLM Master of Laws [Latin Legum Magister] Noun 1. , is an attorney with offices in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. and St. Petersburg, Florida St. Petersburg (often shortened to St. Pete) is a city in Pinellas County, Florida, United States. The city is known as a vacation destination for North American and European vacationers, as well as a politically important battleground in U.S. Presidential politics. . WAYNE A. HAGENDORF, CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. , JD, is an attorney with offices in Los Angeles and New York City. |
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