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Fleeing California Taxes? Get In Line (Leaving is not that easy)
Forbes ^ | 01/16/2013 | Robert W. Wood

Posted on 01/21/2013 7:24:08 PM PST by SeekAndFind

Is it any wonder that many small and medium sized businesses are moving out of California? In the recent elections, California Voters Sock It To The Rich. As the Wall Street Journal noted, some are promising businesses a better life elsewhere. Being courted must be refreshing but it is important for a company and its owners to have reasonable expectations and to budget for drilling down into California’s rules.

After all, leaving is not always easy. A California resident is anyone in the state for other than a temporary or transitory purpose. See FTB Publication 1031. Plus, it includes anyone domiciled in California who is outside the state for a temporary or transitory purpose. The burden is on you to show you’re not a Californian. If you’re in California for more than 9 months, you are presumed a resident.

Yet if your job requires you to be outside the state, it usually takes 18 months to be presumed no longer a resident. Your domicile is your true, fixed permanent home, the place where you intend to return even when you’re gone. You can have only one domicile, but many facts are relevant. Start with where you are employed and where you own a home.

If you own several, compare size and value. Consider your homeowner’s property tax exemption, where your spouse and children reside, etc. Your days inside and outside the state are important, as is the purpose of your travels. Where do you have bank accounts and belong to social, religious, professional and other organizations?

Voter registration, vehicle registration and driver’s licenses count. Where you own or operate businesses counts, as does the relative income and time you devote to them. You can own investments far and wide, but you can expect them to be compared.

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events; US: California
KEYWORDS: california; escape; exodus; expat; taxes
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To: SeekAndFind

That survey should have included an "all of the above" for a lot of us ex-Californios. Every one of those (except 'try something new') was on my list of reasons for relocating out of the state.

21 posted on 01/21/2013 8:14:24 PM PST by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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To: SeekAndFind

Back in the early 90’s I was considering moving to Eureka, Ca. to be closer to my then girlfriend who had moved back home. I must say that staying in Texas and not marrying that girl was a very beneficial decision all around. PTL.


22 posted on 01/21/2013 8:14:34 PM PST by tflabo (Truth or Tyranny)
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To: SeekAndFind

Seems as though California citizenship is becoming about as desirable as Soviet citizenship used to be.


23 posted on 01/21/2013 8:15:28 PM PST by Taft in '52
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To: SeekAndFind

Like Russia, California will build an iron curtain...only with exit taxes.


24 posted on 01/21/2013 8:15:48 PM PST by Huskrrrr
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To: max americana

I’ve been to Panama and really liked it - very Americanized. Think the health care is one big advantage.

Wow, 25k for a condo!


25 posted on 01/21/2013 8:22:05 PM PST by Aria ( 2008 & 2012 weren't elections - they were coup d'etats.)
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To: SeekAndFind

Do you have to relinquish US citizenship to get away from the IRS?

Planning on living on the income from investments - but worried that if the US collapses how much will that income dwindle to? So also thinking about the need to get the principle out of the US.

My brother in law is Dutch and inherited $ from his dad - which apparently will be a problem if he brings it here. I recall my very liberal sister whining about the tax laws here....go figure.


26 posted on 01/21/2013 8:26:54 PM PST by Aria ( 2008 & 2012 weren't elections - they were coup d'etats.)
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To: Aria

I would do an awful lot of research before settling on Panama. I spent three years there in the 1980s, and there are always some issues around the advantages of the area.


27 posted on 01/21/2013 8:37:56 PM PST by pepsionice
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To: SeekAndFind

The IRS and German Finanzamt share everything - there’s no escape.


28 posted on 01/21/2013 8:48:19 PM PST by GreyHoundSailor
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To: SeekAndFind

My son has lived in London for over twenty years and has paid both US and British income tax. It’s so complicated, an accountant does the taxes for both places.


29 posted on 01/21/2013 8:49:05 PM PST by Marcella (Prepping can save your life today. Going Galt is freedom.)
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To: pepsionice

There is a freeper I’ve talked to a few times who lives in the hills outside Panama City I think.

What were the issues?


30 posted on 01/21/2013 8:59:54 PM PST by Aria ( 2008 & 2012 weren't elections - they were coup d'etats.)
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To: SeekAndFind

[[Fleeing California Taxes?]]

you;ll be tazxed if you do


31 posted on 01/21/2013 9:02:36 PM PST by CottShop (Scientific belief does not constitute scientific evidence, nor does it convey scientific knowledge)
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To: RWAubrey

Come on down. Any place near Dallas, Austin and San Antonio is really nice.


32 posted on 01/21/2013 9:02:41 PM PST by Orange1998 (DO NOT PRESS CTRL W)
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To: SeekAndFind
Speaking of Federalism — Does California impose an EXIT TAX to those who plan to leave (i.e., no longer want to reside in) the state?

I believe that this would be unconstitutional, but given a leftist SCOTUS, I suppose it might be possible, especially once they implement an Internet sales tax...

Mark

33 posted on 01/21/2013 9:04:05 PM PST by MarkL (Do I really look like a guy with a plan?)
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To: SeekAndFind

“Try checking out of the US of A...”

Make multiple trips out of the US (to Canada) with cash, gold less than 10k/ person. I wonder if you can send money from Canada out to your destination w/o too much scrunity.

I heard that Ecuador was pretty good. If lots of expats go to one place, that helps.


34 posted on 01/21/2013 9:04:18 PM PST by grumpygresh (Democrats delenda est.)
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To: SeekAndFind

[[Try checking out of the US of A...]]

My plan was to becoem a mexian citizen, then sneak back across the boarder as an illegal alien so that I can get all the benifits that law abiding citizens are denied, and so I won’t ever have to buy a liscence to drive, have a pistol permit, or even file taxes- and so I can receive SS and medicare and have my college education paid for


35 posted on 01/21/2013 9:05:05 PM PST by CottShop (Scientific belief does not constitute scientific evidence, nor does it convey scientific knowledge)
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To: SeekAndFind
But Apple, Cisco, Cat and other corporations can keep money earned overseas out of the states and avoid all taxes. How can this be possible.
36 posted on 01/21/2013 9:06:26 PM PST by Orange1998 (DO NOT PRESS CTRL W)
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To: RWAubrey

I think I have finally convinced my husband to move. Our son started college at Texas A&M in the fall, and we have 16 year old twins. In state tuition in Texas is so much cheaper.

Plus, the housing costs and of course all the taxes.

I think we may rent our Cali home first, and rent out there.

I’m from Texas, but hubby is a Cali native and really doesn’t want to leave.

He lost his job last year after being diagnosed with prostate cancer. He’s got another job at a start up, but it doesn’t pay near as much. He doesn’t want to go back to a corporate job, and he can still work for the start up in Texas.

I really hope it all happens!


37 posted on 01/21/2013 9:12:22 PM PST by luckystarmom
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To: SeekAndFind
Speaking of Federalism — Does California impose an EXIT TAX to those who plan to leave (i.e., no longer want to reside in) the state?

I think that would be unconstitutional.

Besides the 1st amendment right to peaceably assemble, Article I Section 10 Clause 2 states:


"No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States..."
My reading of this suggests that if you consider people themselves as exports, they can't be taxed beyond the cost of processing the move, and then any taxes that they do take goes to the federal government, not the state.

At least one can make the argument.

-PJ

38 posted on 01/21/2013 9:26:54 PM PST by Political Junkie Too (If you are the Posterity of We the People, then you are a Natural Born Citizen.)
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To: rockrr

Yeah, and I note that only 1% claim to leave because it’s too liberal, which is worrying as they are likely to bring their dammed liberalism with them to a red state and destroy it just as they destroyed California, and still haven’t got a clue. They’ve done just that to Virginia, North Carolina, Colorado, etc.


39 posted on 01/21/2013 9:27:25 PM PST by mrsmel (One Who Can See)
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To: Windflier

Note there seems to be no connection in the minds of the poll between to liberal and cost of living


40 posted on 01/21/2013 9:36:32 PM PST by Manta (Obama to issue executive order repealing laws of physics)
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