Tax Residency Consulting – Our singular focus for uncommon results
Tax residency considerations are a key feature of overall tax planning. Exiting a high-tax state and city may result in tax savings as large as 15% of a taxpayer’s annual income.
Residency changes for tax purposes, exits in particular, are one of the most misunderstood areas of tax law. Surprisingly, many very successful individuals rely upon what we call “Country Club Tax Advice.” This is where folks on the golf course brag about how they just bought a Florida condominium (while keeping their New York home of 20 years), acquired a Florida driver’s license and voter registration and, like magic, they are a Florida tax resident. They are told that if they stay out of New York for half of the year, they will be leaving New York taxes in the rear-view mirror. Nothing could be further from the truth. The same example can apply to any two states involving an exit and a relocation (“landing”). Similar complexities are involved in leaving a city, for example, New York City, while remaining a New York State resident. All states, especially high-tax states, are aggressively seeking tax revenue. Unlike the Federal government, states cannot print money; they rely upon aggressive tax policy. Once a taxpayer is a resident of a state, especially an affluent one, the state is not letting go easily.
Residency-RX™ is a subsidiary of KLN Accountants and Advisors (Kamler, Lewis & Noreman LLP), a highly respected and long-established Certified Public Accounting firm servicing diverse business and individual clients nationwide for several decades. We provide a step-by-step plan to our clients on how to legally, effectively, and safely exit a tax jurisdiction and how to land in a new one.
Tax residency changes are full of pitfalls and complex case law far beyond what most taxpayers realize. Residency-RX™ was created to be a reliable guide in changing tax residency status in all 50 states. We create the plan so you can concentrate on enjoying your new home.
