How to leave california properly
im going to move to another state. I know i can google this and will absolutely consult with my tax advisor but would love to hear tips from fellow blinders who ensured there was a clean break so i dont have to pay california income or capital gains taxes after i move. my current california assets: - a trust - several bank and investment accounts - no home (i rent) - no car - CA driving license TC $250k (non eng) YOE 10 #cpa #tax
What is your concern, exactly? You can just leave.
Continuing to pay CA taxes
Issue is for income which isnt clearly which state based( ie long term gain or business sale). Rent and w2 pretty clear which state it is, ca wont tax salary from other state
You have a trust and no car Warren buffet next level 👏
Any family? If not, then get the out of state license as soon as you move and update all addresses for your workplace and 'legal residence' to your out of state address (try to not keep any CA mailing address for long - you might forget - and you need this as evidence). If you have dependents, have them move as soon as possible and document their address/school/work change. You may need the paper-trail in 2-3 years if you ever get a notice from the state tax authorities.
Update your address on your bank or credit card companies as well as your work system. Then record day you moved when you file taxes next year
Get a new license, register to vote if you can, consider closing any bank accounts that are not with banks with a presence in your new state, change all addresses on file for everything to your new location. Basically, live your life in the new state as much as possible, making clear you are only going to CA occasionally to visit.
This is a great list
Out of curiosity. Where are you looking to move to?
NY
Wouldn’t the tax situation be similar?
Just leave. If ur working remote u still pay taxes where ur job was located. Otherwise ur good to go. U won’t pay income tax elsewhere since ca is so high.
wait why? If i relocate from CA to a state with no income tax, buy a home, register my car there and get a DL, why would I continue paying tax where my job WAS located? Provided I am permanently remote now, of course
I think they meant if you are working remotely temporarily due to covid vs permanently remote (eg you were hired to work in CA but you are now working from home in TX).
curious - why having a trust? what's the benefits?
In a divorce, for example, the trust fund isn't accessible to anyone other than the beneficiary. Can't give up half of what's not yours.
Does it include what you out in it post marriage?
You will pay taxes on income earned in California even when you leave the state. For example if you sell options earned in California those will be taxed by California, not the state you move to. All future income will be taxed in your new state. Ask your accountant.
By saying GoodBye