The Motley Fool Discussion Boards
Retirement Discussions / Retire Early CampFIRE
|Subject: Re: retire early study||Date: 2/12/2000 2:32 AM|
|Author: 4aapl||Number: 3744 of 744238|
It's been a slow night, so I took a look at the California 540 NR and CA 540 NR, which then refered me to 1031 to see about residency qualifications. It's actually a pretty humorus document. I mean, who would really think of sneaking into the examples that a couple moved off to spain on May 5th (or maybe it's just me not remembering forsure if it's a spanish or mexican celebration)
Anyways, CA taxes any income while you are a resident of CA, and any CA based income while you are a nonresident. Thus if I stayed here in AZ, but did a consulting job or 2 in CA, I would have to pay CA taxes on those jobs. Additionally, in a partneership, it isn't based on where I live most of the year. So, if I lived in AZ up until dec 30th, only did jobs in AZ, but then moved to CA on the 31st, I would owe CA taxes for the whole year.
And then there's the resident basis. It's based on everything from where you bank is, who your doctor and dentist are, what club memberships you have, and where your social ties are. They really go for the jugular.
My guess is that 90% of this is due to people like us thinking about this. CA is a very attractive place to live for a lot of people, but with fairly high taxes there will always be people trying to sneak by the rules. A short fence won't discourage many people from trying, but a huge one with razorwire is going to scary away all put the most willing/risky/daring/stupid.
That's it for now. Unless future rants about this refer directly to the pursuit of RE I will probably place them over on the tax board....though i must admit I haven't been there since I found this board.
Fool on, and check out this PDF if you find humor in strange things such as this
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|