Out of State Real Estate Ownership?

[VanForNow]

I live in NY state and own an apartment.

After I buy a van and go on the road, will it complicate things if I keep ownership of my NY apartment and then register as a state resident of South Dakota, Texas, or another state?

 

[highdesertranger]

short answer, no. you don't even need to be a citizen of this country to own property here. I don't see how it would be a problem. highdesertranger

 

[Optimistic Paranoid]

Define "complicate".  A person can have several residences, but only one PRINCIPAL residence.  Which one is your principal residence can have serious tax implications.

Take a quick look at this:

http://realtytimes.com/trending1/item/27263-20140122-defining-what-your-principal-residence-is

Notice in there that a boat or RV CAN qualify as your principal residence, IF it has a kitchen and sleeping and bathing facilities.  Notice also that the courts usually decide these things on a case by case basis.

 It would not surprise me if at some point, NY attempted to claim that your NY apartment MUST be your principle residence, since a van without a bathroom couldn't possibly qualify, therefor you were actually engaged in illegal tax evasion by trying to claim you are a resident of a state like SD or TX.

NY is used to getting a tax return from you every year.  They will eventually notice that you have stopped paying taxes, but still own your apartment.  At BEST, this will probably lead to an unpleasant to deal with investigation.

Personally, I would make a clean break with NY.

But then, I also wouldn't be seeking free legal advice on the internet.  You really need to sit down and discuss this with a lawyer and or a tax accountant.

 

[SoulRaven]

Pretty much what Optimistic Paranoid said above. This is a good article: http://www.technomadia.com/2012/07/...stics-domicile-mail-taxes-banking-and-voting/ All government municipalities are pretty hard up for cash now and aggressive.

 

[DannyB1954]

I think it would all depend on where the paper trail says where you work, where you spent most of your time, and where you did your banking. If all your purchases come back to a NY address, it will be tough to say that was not your home base. Some places are strict on having local vehicle registration. If you have SD plates, after a while you may get hassled if you are in NY. Today it is not hard for LE to figure out where you have been. Cell phone records etc. Every call you make, there is a record of where you were. If your paper trail shows different locations, then you are a traveler on vacation. No real limit for how long you can vacation. If everything points to one location that is not where you claim residency, it looks more like tax fraud.

 

[highdesertranger]

I don't understand all this. you can own property(s) in any state(s) doesn't matter where you live. highdesertranger

 

[SoulRaven]

You can own property in any state, but where you domicile does make a difference and you want to make that solid especially when using one of the three states known for offering an "address" to people that don't reside there, FL, TX and SD. It needs to look like you have pulled with stakes and intend to make the domicile your legal home, not physical, but legal. They are wise to someone that might go and set-up a domicile in SD in order to avoid certain taxes, maybe no taxes, etc. And, people do this and it saves them money. It becomes the cheaters that cause an issue, the ones that aren't full-timing and traveling but trying to work a system they aren't entitled to. The more money they have, the more they tend to try to cheat the system.

The one thing I can tell you I saw the most people get caught on was having a driver's license from one state and tags from another. Also, people who had out-of-state tags and sat too long in one spot, since there are requirements involved. I know with CA, if you take a paying job, make sure you read their laws as to how long you can be in the state before registering your vehicle there.

This is all VERY complicated. And, yes, the laws can be ignored if someone is comfortable in doing that.

 

[Optimistic Paranoid]

What Snow Gypsy said.

Plus, remember, the original poster isn't actually buying a second residence in SD, he's just registering his vehicles and getting a mailing address there.  Keeping an apartment in NY is tailor made for NY to claim it's your sole residence and therefor you still owe them taxes.  Maybe you can beat them in court, and maybe you can't, but either way it's a "complication".

Let me put it this way, HDR.  If you owned a house in CA, but used Bob's mail order buddy in Pahrump to get a mailing address and register your vehicles, and then spend all year prospecting in NV, do you really think CA will buy your theory that you are no longer a CA resident and therefor don't owe them any income tax? Gracefully?

Maybe you can make it stick, but I'm guessing there will be a long and expensive court battle first.

 

[highdesertranger]

that's is kinda what's going to happen. only I have an legit legal residential address in AZ. ef Kalifornia. but thank you for your concern. highdesertranger

 

[TrainChaser]

If the apartment in NY was rented out, it might just qualify as income property. I read somewhere that Nicholas Cage has 16 mansions all over the place: CA, NY, LA, RI, NV, England, Bavaria, the Bahamas. I doubt that he (even with millions) is paying state income tax in all those states.

As was suggested above, get some REAL advice, not guesswork.

 

[DannyB1954]

If you owned a house in CA, but used Bob's mail order buddy in Pahrump to get a mailing address and register your vehicles, and then spend all year prospecting in NV, do you really think CA will buy your theory that you are no longer a CA resident and therefor don't owe them any income tax? Gracefully?

Many people owned vacation homes in a different state. You have to pay property taxes there, (sometimes at a higher rate not being primary residence). If you can prove you were elsewhere most of the year, where you were can easily be claimed as your domicile. 

In my case, when I moved to Nevada and became a resident, I kept the house in California, (just in case I didn't like Nv after all). 
I was a resident or domiciled in Nevada, but had a secondary place in Ca. I never did go back, so sold the house after a few years.

Now had I claimed domicile in Nv, but spent most of my time in Ca, I could see where Ca. could charge me with tax evasion, (no income tax in Nv.).

 

[wfromm]

If you change your residence as Bob has indicated to one of the preferable states you may have several advantages. No state income tax, lower vehicle tax, etc. However, New York is very diligent in trying to keep its residents. You need to change your Bank Accounts, Drivers License, Vehicle Registration and all mail to the new address. Not only do they want State and Local income tax, they possibly have a State Estate Tax. If you rent the house, you will have converted it to rental property and it will be subject to Federal and New York income tax. You can be a resident of another state and you will still owe New York income tax on the rental property if you go that route. I love upstate New York, particularly the Adirondack Park, but I would leave. All of this may be immaterial if you have very little income or few assets.