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 ...
Transfer your money/investments/assets to another State or Country (Cayman Islands) BEFORE you leave. I've read about many who did so and still get Cali Franchise Board dunning letters about taxes owed and they just ignore them. It may take a couple of letters to Franchise Board, but after a while they just give up.
If your money and assets are out of California, there is nothing they can do. Unless the Fedgov steps in, which they can't and won't, take your money and run and ignore California. Of course it gets complicated if you maintain a business or sale in Cali. But for the most part, yes, you can liquidate and take your assets elsewhere.
Yes, the Fedgov attempts to tax your income/profits while living out country as a USA citizen, but again, think off-shore accounts. I've been looking into once I leave this socialist state of Cali. Costa Rico, Cayman Islands, Bermuda, and a couple others don't inforce it. Surprisingly, Switzerland now has an agreement with the US about moneys transferred.
The Franchise Board may place a lien on your out of state property that includes escalating penalties and interest. I speak from experience. Do not ignore their letters; hire a mean dog CA tax attorney to fight them. If you are clean, the state will likely fold immediately if threatened with a counter-suit.
The best cancer center in the whole wide world... is in Houston, Texas.
And the fact that “too liberal” is only at 1% is the reason the rest of us despise most Cali emigrants. They come to another state and proceed to foul the nest there, not realizing the top 8 reasons are all the RESULT of “ too liberal”......
We’re one conservative Justice away from dictatorship.
California government is a tax vampire. I never lived there, never worked there, and still had to write a lengthy letter to get them to leave me alone. My crime? I’m a Georgia resident who did some contract work for several months for a Georgia-based subsidiary of a Cali parent company. Then I moved to Arizona for a year to work as an FTE for an Arizona company. The tax vampires figured that was close enough. Unfortunately for them, I formerly practiced state and local tax law and know something about nexus and the Constitution.
Incorporate my man, incorporate.
California government is a tax vampire. I never lived there, never worked there, and still had to write a lengthy letter to get them to leave me alone. My crime? I’m a Georgia resident who did some contract work for several months for a Georgia-based subsidiary of a Cali parent company. Then I moved to Arizona for a year to work as an FTE for an Arizona company. The tax vampires figured that was close enough. Unfortunately for them, I formerly practiced state and local tax law and know something about nexus and the Constitution.
Try Cebu or Cagayan de Oro rather than Manila ,, much nicer places to live ... and remember , accounts in foreign currency (USD) have stricter privacy protections in the RP than you have in the Bahamas or Caymans.. If you earn anymoney make sure to filter it through a LLC or similar..
Any thoughts about Baguio City if you like a somewhat cooler climate?
Does anyone here have an agenda by which one could sell everything they own, cash in all investments and get the hell out of this nation?
The Caymans would be a good destination. No taxes of any kind!
RE: Does anyone here have an agenda by which one could sell everything they own, cash in all investments and get the hell out of this nation?
The Caymans would be a good destination. No taxes of any kind!
______________________
Not sure if this helps you in any way. The Cayman’s won’t tax you, but the US will.
If you hold an American passport and live in the Cayman’s, any income you derive from the Cayman’s is STILL SUBJECT TO TAXES in the US by our tax laws.
Unless our tax laws are repealed, there is no escape for the American citizen.
RE: Any thoughts about Baguio City if you like a somewhat cooler climate?
I’ve been there many times. You have to go through a spiraling highway to the mountain top (5000 feet above sea level) to reach the city.
It is the vacation destination of choice for many to escape the hot summer months.
CAVEAT: They suffered a huge earthquake in 1990 ( not trying to scare you but, hey, you’ll never know ).
Yes but.....they have balut and truly fantastic mangos also San Miguel Beer.
I lived in San Miguel village years ago and worked on Ayala Avenue
Yes but.....they have balut and truly fantastic mangos also San Miguel Beer.
I lived in San Miguel village years ago and worked on Ayala Avenue
RE: 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.
Because they are CORPORATIONS, not individuals. Their money is subject to taxes only when they repatriate them back to the USA.
This is what makes our Federal tax system so convoluted. We are spending so much money and resources on expanding the port of the IRS to investigate the income of Americans and permanent residents worldwide.
I wonder — what makes this any different from an oppressive, big brother country like the USSR?
RE: Yes, the Fedgov attempts to tax your income/profits while living out country as a USA citizen, but again, think off-shore accounts.
Let’s talk about offshore accounts then.
There used to be a time when Switzerland was considered the safest, most secure, most secret offshore account one can ever have. Even the Nazis placed their money in Swiss accounts.
Guess what happened in 2008? The IRS, using the might of the United States of America, DEMANDED that the Swiss Banks REVEAL the names and accounts of EVERY AMERICAN with money in Swiss banks.
The Swiss at first, refused to comply and fought it. Guess what America did? They threatened the businesses of Swiss banks doing business in America — UBS, Credit Suisse, etc.
Eventually, the Swiss capitulated. That happened I think in 2009. Thousands of American account holders were revealed to the IRS and employees of UBS and other Swiss banks were prosecuted for helping Americans move their money to secret Swiss bank accounts.
Read all about it here:
http://www.panamalaw.org/UBS_closing_accounts_of_americans.html#
and here:
http://www.time.com/time/business/article/0,8599,1917648,00.html
UBS is the biggest IRS culrpit because of their huge presence in the USA, but that’s just a start.
Suffice it to say that if you are an American and you have substantial amount of money overseas and you don’t want the IRS to go snooping on it, SWITZERLAND IS NOT THE PLACE TO GO TO ANYMORE.
Baguio City ; never been there ,, did some quick reading and it sounds rather nice ... I would suggest visiting an area for a solid month before deciding.. Davao/Cebu/CDO would be the ones I would investigate/visit.. I have duplexes in CDO City .. it’s my favorite.
Thanks to the British the Caribbean is 80% Obama relatives. You will be taxed other ways.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.