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Author: Wheee Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121599  
Subject: Moving states--planning Q Date: 4/5/2005 11:39 PM
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I am moving states from WA to CO. CO has a state income tax, WA does not.

I'm trying to figure out at what point I become a CO resident and therefore liable for state income tax. I am staying with the same employer.
My WA house sale closes on May 13th. I will be leaving WA on April 15th and driving to CO arriving April 19th. I will be staying in temporary housing starting April 19th
I currently have an office and a phone number BOTH in WA and CO. On April 15th I will only have an office in CO.

When will I be considered a CO resident for tax purposes?

1) When I sell my primary residence in WA, May 13th?
2) When I move into the temporary housing, April 19th?
3) When I leave WA, April 15th?
4) When my company changes my office address to CO?
5) Other?

Another question: I will be receiving a significant amount of income ($50k) on around May 17th. Any legal and ethnical way I can have this as WA source income and therefore not subject to CO state tax? The income is reimbursement for my house selling costs from my employer

Thanks in advance!
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Author: TMFDj111 Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 78326 of 121599
Subject: Re: Moving states--planning Q Date: 4/5/2005 11:59 PM
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I am moving from WA to CO. I'm trying to figure out at what point I become a CO resident and therefore liable for state income tax.

All states have websites with URLs of the form http://www.state.XX.us/, where XX is the two-letter postal code for the state. For example, Colorado's website is:
http://www.state.co.us/

Once you get to the state's website, then look for their tax collecting agency. For the states in which I've lived, that agency has always been called the "Department of Revenue."

Once you get to the tax collecting agency, then look for information about "part year residents."

Based on my experience, I would expect that you will become a resident when you get a Colorado drivers licence, title and register your cars in Colorado, buy residential real estate in Colorado, and register to vote in Colorado. I would expect that you are required to get the drivers license and register and title your cars within 30 days of arriving in the state. There probably is some wiggle room, and a tax expert in Colorado can help you to figure out where the legal, ethical, and moral boundaries lie.

Another question: I will be receiving a significant amount of income ($50k) on around May 17th. Any legal and ethnical way I can have this as WA source income and therefore not subject to CO state tax?

This question is trickier. Somebody may be able to answer it. However I would ask a tax expert in Colorado.

David Jacobs
TMFDj111

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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 78327 of 121599
Subject: Re: Moving states--planning Q Date: 4/6/2005 12:52 AM
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Another question: I will be receiving a significant amount of income ($50k) on around May 17th. Any legal and ethnical way I can have this as WA source income and therefore not subject to CO state tax? The income is reimbursement for my house selling costs from my employer

This income will always be WA source income. That does not necessarily exempt it from CO taxation. Although I don't know CO tax law, I'm sure it is the same as any other state I *am* familiar with... namely, all income earned world-wide is taxable to CO if you are a resident of CO unless explicitly excluded by CO (or federal) tax law. So, the only way to avoid CO taxation on the $50K is to ensure that you receive it before you establish CO residency.

Ira

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Author: numbrel Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 78332 of 121599
Subject: Re: Moving states--planning Q Date: 4/6/2005 9:05 AM
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When will your company begin taking Colorado taxes out of your paycheck? That might give you a starting point. Whenever I have moved, I have had to get a new job so that is the point I usually use.

I do believe Colorado has a residency law, but I haven't heard of it being enforced much. I have always waited until my car registration from the old state is about to expire before I register in my new state. It got me 1 1/2 free years in Missouri because their auto registration/licensing is so stupid.

Have fun in CO!

Barbara
(Who would like to move back Colorado.)

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Author: reallyalldone Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 78333 of 121599
Subject: Re: Moving states--planning Q Date: 4/6/2005 12:07 PM
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I do believe Colorado has a residency law, but I haven't heard of it being enforced much. I have always waited until my car registration from the old state is about to expire before I register in my new state. It got me 1 1/2 free years in Missouri because their auto registration/licensing is so stupid.

They have increased the fines in Colorado significantly - I would recommend doing it within the legal timeframe. Also be prepared to pay a tax on the value of the car each year.

rad


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Author: synchronicity Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 78335 of 121599
Subject: Re: Moving states--planning Q Date: 4/6/2005 1:37 PM
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Also be prepared to pay a tax on the value of the car each year.

So Colorado is one of the states that does that? I always wondered about that when reading through the Schedule A instructions.

-synchronicity


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Author: reallyalldone Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 78336 of 121599
Subject: Re: Moving states--planning Q Date: 4/6/2005 2:18 PM
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So Colorado is one of the states that does that? I always wondered about that when reading through the Schedule A instructions.

Yup - it goes down each year but it can prove to be an additional deterrent to purchasing an new vehicle. On the registation, the small number is usually the fee and the large number is usually the tax until the car gets out past about 6 or so years.

rad


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