Establishing a full-timing “home state” for taxes

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By Neil Seidler, CPA, CMA
TAX CORNER

Dear Neil,
Tax CornerWe are currently in the process of selling our sticks-and-bricks home to become full-time RVers. What should we know about establishing a “home” state for taxes, vehicle registration, insurance, etc.?


Neil’s reply:
There are several factors to consider including state income taxes, vehicle registration costs, health insurance and other insurance issues. Some states popular with full-time RVers are Texas, Nevada, Florida and South Dakota because they all have no state income tax and have generally lower vehicle registration and insurance fees. You’ll need to spend some time in the state you choose in order to get a state driver’s license, register your vehicles, and complete any other paperwork required.

A Post Office Box cannot be used as an official residence location; you need to have a physical street or PMB (Private Mailbox) address (see related video). Do you have children or another relative living somewhere that you can use their address? Do you own an RV lot at one of the ownership RV parks that you can use as your “home base”? Alternatively, there are several mail forwarding services and other organizations that will give you a street address so that you can use it as your official residence and who will forward your mail to you as you direct them.

After 15 years of being either full-time part-timers or part-time full-timers we’re currently in the process of becoming full-time full-timers, so in a future article we’ll discuss the highs and lows, the good, the bad, and the downright ugly of the process.

We welcome your questions and inquiries. If you have tax-related questions, or any other questions that we may be able to address, please email us or comment below and we’ll try to answer them in a future article. You can email you me at TheRVTaxGuy@gmail.com .

The material presented here is for informational purposes only and is not intended to
provide, and should not be relied on for tax, accounting or legal advice. Readers should
consult their own tax, accounting, and legal advisors to discuss their own personal
matters.

Neil Seidler CPA, CMA, has served businesses and individuals across the USA and Canada for 35 years. As an avid RVer and recent full-timer he has a unique perspective on RV tax issues.

Read Neil’s recent post: Is interest on an RV loan tax deductible?

##RVT922

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Terri Foxx-Wishert

We lived in Washington, and have kept that as our home state – no personal income tax. Use a relative’s home as our residential address. This also is headquarters for our doctors and dentist. Use a mail service for forwarding mail. Have kept the same credit union for more than 35 years, they know we travel, we tell them where and when. Has worked very well.

TravelingMan

Texas is our home base…

No State income taxes is probably the most likely reason. But we only stay there the minimum requirements.

Another state overlooked is Wyoming. No State tax, nothing (it seems) on taxing pensions, 401’s or Social Security (beyond what the Fed’s rape you over for). Property taxes are cheap. Sales taxes are cheap. Land prices are sky high if you buy! But if you full time, this seems to us as another great alternative State.

In Texas, the DPS has input all PO boxes and most
UPS or other mailbox services into their data base. You will not get a driver’s license if you use one of these.

If you coming in from out of State, you will jump thru a number of hoops to get the registration paperwork done. Be prepared that you will also require a State Inspection before you can get a license plate and registration. They fingerprint you, take your photos and treat you like a criminal before you’re presumed innocent. All in the name of “National Security”.

You’ll need to set up banking, preferrably your church membership, and have your cemetery lot picked out there. They prefer (almost mandate) that you pay property taxes there (hence why you can’t use a PO box or normal mail service). If you can’t find a way around this, go to West or far South Texas and buy a $500 or less piece of property and call that home. Make no improvements. Its about the cheapest way out.

There are a lot of IRS rules about domiciles. Be sure to read thru them carefully and consult with your Tax advisor before you set roots down.

Tennessee is also beginning to look like another favorable State. And check out Georgia…

Looking forward to what Neil Seidler has to offer on this topic…