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Determining State Residency
Old 08-02-2015, 03:54 PM   #1
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Determining State Residency

Currently reside in state of Colorado but have another home in Arizona. Have bank accounts, cars, dr's, etc in Colorado so that has been considered our state of residency. We also spend slightly more than half the time in Colorado.

Have just signed a contract to sell our house in Colorado. We may return next summer and purchase a smaller condo/house.

For residency purposes which state do you think we call home? Doesn't overly effect me much (other than potentially having to fill out two state tax returns). For GF there is the issue of ACA. In Colorado she goes through state exchange. In Az it is Federal exchange. The Colorado policy she bought does cover her while in Az.


While we are technically moving it is not necessarily a final full time move. We have not changed voter registration, driver's license, car insurance, etc.

Thoughts?
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Old 08-02-2015, 04:31 PM   #2
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Go to Four Corners and play spin the bottle? My guess would be it could be called either and probably not be contested unless some reason were made available (like a current mailing address that didn't jive), however if contested it might be sticky.
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Old 08-02-2015, 04:34 PM   #3
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If your intention is to return, that may be good, but you do have the little pesky issue of not having a street address in Colorado once your house is sold. That will probably cause problems.

For example, if you do a permanent change in address at the Post Office, the IRS will pick that up for your future tax return.

Then you need a county for registering your vehicles. What address do you give them? And your voter's registration?

You insurance companies will also care very much.

I think you need to figure out a way to retain a CO address.
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Old 08-02-2015, 04:46 PM   #4
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The comment we may return gives the issue away. You are not sure you will return so Co. is not your permanent address. At this point the Az address is your permanent address since you do not have a definite intention to return to Co. Of course many folks use a private mail box for mail and have them forward the mail. Look on the RV forums for folks that travel most of the time and use an RV park as an address.
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Old 08-02-2015, 05:47 PM   #5
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I don't know anything about the applicable laws, so take this post with a grain of salt. That said, it definitely seems to me that you are moving to Arizona.
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Originally Posted by RockyMtn View Post
While we are technically moving it is not necessarily a final full time move. We have not changed voter registration, driver's license, car insurance, etc.

Thoughts?
If your driver's license and insurance are not assigned to any address where you are living, I think you are asking for trouble? I may be wrong (often am) but IIRC you have 30 days to change your driver's license address.

I'll ignore what RV'ers do because I never quite understood how they pull that off. But anyway, I'm just expressing my opinion and you can decide how much weight to give it.

And "a final full time move"? When has anybody ever made a final move these days? Nope, to me you are moving and that's that. YMMV though.
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Old 08-02-2015, 07:12 PM   #6
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I wonder about this too. Which state would you have to pay state taxes for from when?


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Old 08-02-2015, 07:37 PM   #7
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Some states hate to give you up! New York State audited me four years after I'd moved out of the country trying to prove I was still domiciled there for tax purposes. I passed the audit, thankfully, but it took 18 months of arguing.


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Old 08-02-2015, 08:36 PM   #8
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Arizona.

Can you legitimately still be registered to vote, have a license or car insurance in Colorado once you no longer live there? I think for car insurance, it is based on where the car is garaged most nights, which would presumably be Arizona.
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Old 08-02-2015, 09:17 PM   #9
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I don't know anything about the applicable laws, so take this post with a grain of salt. That said, it definitely seems to me that you are moving to Arizona.

If your driver's license and insurance are not assigned to any address where you are living, I think you are asking for trouble? I may be wrong (often am) but IIRC you have 30 days to change your driver's license address.

I'll ignore what RV'ers do because I never quite understood how they pull that off. But anyway, I'm just expressing my opinion and you can decide how much weight to give it.

And "a final full time move"? When has anybody ever made a final move these days? Nope, to me you are moving and that's that. YMMV though.
The 30 day thing is for people changing employment. There aren't strict deadlines for the unemployed.

For the RVer, it does depend on the state, but assuming you return to certain campgrounds each year, you can pick one of them as a permanent address, and you won't have any trouble.

I never heard of a requirement to have your vehicle somewhere X nights.
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Old 08-02-2015, 09:29 PM   #10
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The 30 day thing is for people changing employment. There aren't strict deadlines for the unemployed.

For the RVer, it does depend on the state, but assuming you return to certain campgrounds each year, you can pick one of them as a permanent address, and you won't have any trouble.

I never heard of a requirement to have your vehicle somewhere X nights.
In most states it says so many days after you establish residency, no relationship to employment.
If you read your auto insurance policy it says the vehicle is principally garaged at the address specified. Making a false declaration allows the insurance company to cancel the policy if there is a loss, leaving you in the lurch.

Here is AZ's definition of when you need a drivers license "
State law requires that you obtain an Arizona vehicle registration and driver license, immediately if any of the following applies:
  • You work in Arizona (other than for seasonal agricultural work).
  • You are registered to vote in Arizona.
  • You place children in school without paying the tuition rate of a nonresident.
  • You have a business with an office in Arizona that bases and operates vehicles in this state.
  • You obtain a state license or pay school tuition fees at the same rate as an Arizona resident.
  • You have a business that operates vehicles to transport goods or passengers within Arizona.
  • You remain in Arizona for a total of seven months or more during any calendar year, regardless of your permanent residence.
Out-of-state students enrolled with seven or more semester hours, are not considered Arizona residents, regardless of employment."
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Old 08-05-2015, 08:07 PM   #11
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Unfortunately, as pointed out already, the downside of getting this wrong can be significant. I would rigorously check the state(s)' (and things like insurance) rules and then comply. When I moved, I had no problems "claiming" new residency but YMMV.
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Old 08-05-2015, 10:30 PM   #12
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A warning to toss in regarding such as car insurance. If you have an accident, and your insurance company decides you have not been honest regarding your residence status, they might deny coverage.
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Old 08-05-2015, 10:40 PM   #13
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Sounds like we are going to become Az residents sometime in September after the sale on the house closes. No real downside. Az and Co state taxes basically the same. Might even save a few $$$'s on car insurance. Just a bit of a pain to change GF's health insurance for a couple of months.


Kind of what I figured so no huge deal.
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Old 08-07-2015, 06:19 PM   #14
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Another consideration not to be overlooked is your will and estate plan. You should consider some legal advise and probably update your will.


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Old 08-07-2015, 06:35 PM   #15
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Another consideration not to be overlooked is your will and estate plan. You should consider some legal advise and probably update your will.


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That's on the list for when we go empty out the other house. Thanks for all the info folks. Looks like we will just switch everything over and become Az residents!!!
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Old 08-07-2015, 08:10 PM   #16
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Another consideration not to be overlooked is your will and estate plan. You should consider some legal advise and probably update your will.


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Or at a minimum take your existing documents etc to an instate lawyer and have him review them I had a neighbor do the review with the attorney I used to handle my parents estate, and it turned out that though out of state he found the neighbors documents ok (they had a trust). So first figure on a review and see what the lawyer recommends.
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Old 08-07-2015, 10:31 PM   #17
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Or at a minimum take your existing documents etc to an instate lawyer and have him review them I had a neighbor do the review with the attorney I used to handle my parents estate, and it turned out that though out of state he found the neighbors documents ok (they had a trust). So first figure on a review and see what the lawyer recommends.
My attorney will give me the lowdown on the move and recommend an attorney for me in Az. Colorado and Arizona have very similar estate laws, taxes, etc so it may not be a big issue.

Have already spoken with insurance company and everything is easily transferrable. Just paperwork. DMV on cars, licenses, voter registration pretty easy as well.

Hate to have to file multiple state returns but TTax will handle fine.

Biggest issue will be GF switching from the very easy to use Colorado Health Exchange to the Federal Exchange here in Az.

Hey..whadda you going to do? Moving involves some pains. Whether it is in state or out of state.

Will just be glad to be down to one house and renting a month or two in the summer!
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