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Old 09-11-2013, 10:14 AM   #21
Thinks s/he gets paid by the post
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Location: North Bay
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I've spent several weeks of evenings this year learning the ins and outs of California residency for expats. In fact I spent another few weeks teaching it to my Megacorp-hired US tax accountants, after reading the tax code, 20 years of appeals (including Joe Morgan the baseball player's), textbooks, and Franchise Tax Board training manuals.

Yes, California is aggressive in claiming residency, but not to a crazy extent. Basically it comes down to this. If you are a California resident, you can break your residency by: 1)establishing a domicile in another state or country...a domicile is your real physical home, with your doctors, church, clubs, friends...not just a POBox, drivers license, and a voter registration; or 2)leaving the state for "other than temporary or transitory purposes." There is now a safe harbor definition of "other than temporary or transitory"...i.e. being gone for 1.5 years without returning for more than 45 days. The appeal process has set a precedent for another definition... intending to be away from the state for work for an indefinite period expected to be more than 2 years while not maintaining a home in readiness to reoccupy ('d better rent your house out while you're overseas). So in fact you can maintain a California domicile and not be considered a resident while you're gone.
For those who are considered residents, income tax is owed on worldwide income. For those not considered residents, tax is only owed on income generated in the state...for example your rental income.

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Old 09-11-2013, 11:06 AM   #22
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"Texas means 'friend'." (Actually, 'tejas'. but that's where it came from.)

Off-topic, there is a reason that Texas is booming and the rest of the country is not doing well.

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I am retired.
And I don't care how big your truck is."
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Old 09-11-2013, 12:00 PM   #23
Thinks s/he gets paid by the post
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Join Date: Mar 2006
Location: Houston
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There is a trailer park north of Houston that has about 10 times the number of residents as trailer spots. It's geared towards people who live in their RV and live all around the country. The RV park serves as their mail drop so everybody avoids state income tax, has an address and a place to get a drivers license.

On a related note, these people have a very high absentee voter participation. This area used to be a dem stronghold but the RV "residents" have changed this to repub territory. The dems have sued and complained but they have lost on every turn to try to make it a requirement for actually being a resident a certain amount of the year to vote.
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
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Old 11-07-2013, 08:22 AM   #24
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Join Date: Nov 2013
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Originally Posted by scrinch View Post
I have Vanguard, Schwab, Fidelity, and a couple of other smaller accounts as an expat. I have no problems transacting business in any of them. But I had all of these accounts when I moved overseas, and I use a US PO Box address that is forwarded to me weekly.
Do you mind sharing which mail forwarding service you are using?


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