[proxy_user]

There’s little they can do if you sell your house, leave, and never return. This mostly involves people who try to fake their residency.

[L,TOWM]

Ahhh, but if you did that in 2005 and then inherited rental property in CA from a relative that passed away, guess what you get to do?

File a Form 540NR with f———g Franchise Tax Board every year, to get back MOST of the money they tell the General Partner to withhold from your distribution...

I loved growing up in CA, but I was 10 years late for the door when I left.

[Farmer Dean]

You have to know that they are trying to come up with an exit tax that will be upheld by the courts.

[Grampa Dave]

“There’s little they can do if you sell your house, leave, and never return. This mostly involves people who try to fake their residency.”

This could leave the door open to a lot of Californians and Oregonians to play this game with the state of Washington which has zero income tax.

Here in tax crazy Californicator land, we see a lot of locals driving vehicles with Washington Tags. Most of them are retired or have their own businesses that can be run out of a home office in any state.

[AnotherUnixGeek]

There’s little they can do if you sell your house, leave, and never return.

Oh, I'll sell my house and leave within a few years. But I'll be back as a tourist - California still has some of the best weather, scenery and people in the world - the toxic liberal enclaves mostly infest the coast.

[eyeamok]

There’s little they can do if you sell your house, leave, and never return. This mostly involves people who try to fake their residency.

Not exactly, I moved to AZ for 5 years and Ca hounded me for 3 years, numerous letters and responses by my CPA, it took an actual personal Phone call to a real investigator at the FTB, it turns out All Mail In Correspondence THEY SEND YOU is automatically Thrown Away and your case with penalties accruing continues until you have that person to person chat and send them your Fed and State returns with your new address. The exact same thing happened with my brother when he moved to Henderson, and you can search this site for the Hyatt Case from the Supreme Court from yesterday I believe, that is How it Started! It can be done.

[Ancesthntr]

“There’s little they can do if you sell your house, leave, and never return.”

---

True.

“This mostly involves people who try to fake their residency.”

---

Largely untrue.

I worked for nearly 15 years as a CPA doing taxes in NYC and NJ. NYS and NYC were VERY aggressive, even 20+ years ago, in asserting that someone who had left was still a resident. You are dealing with wealthy people, and they will listen to their accountants and tax lawyers if it will save them substantial money. No legit CPA or tax attorney is going to tell them to fake it - they know that there could, or even likely will, be an examination, and will give the proper advice.

I remember working on several Estate Tax cases against NYS. The deceased in all of these cases had long since moved out of NY (mainly to Florida because it is 2 1/2 hours by plane and has very low taxes), but when they died they were buried in their family plot in NY. Boom...NY then asserts that someone who hadn’t lived in the state for 10 or 20 years had not intended to leave, because they were going to be (get this) residents forever. I $hit you not, that was actually their position. Well, even a liberal, state-worshipping, judge couldn’t buy that, so the state lost every time...but they made our clients spend many thousands of dollars to defend a completely bogus claim...and, simultaneously, do it with a family that was still grieving over the loss of a loved one. The f’ing scumbags.

This is, BTW, similar in nature to the dozens of bogus assessments that I was tasked to deal with from NYC. They would send a notice to a taxpayer, saying that they owed $89, or $147, or as much as $250. Which they did NOT owe - not in one single case. However, the people at the top of the NYC Dept of Revenue who decided to issue these notices (apparently several tens of thousands of them) knew that for a CPA or a lawyer to fight them would cost the taxpayers somewhere between $500 and $1,000, and thus anyone with any sense would just write the check. Well, most probably did (I’d call that outright fraud and/or extortion), but some fought it out of principle (and, at least for our clients, they won).

That’s what tax authorities do.

[napscoordinator]

Of course that isn’t what the article is about at all.