ER Home in Florida

[steelyman]

My parents lived in the Edgewater/New Smyrna Beach area (just south of Daytona Beach) for about 15 years and really enjoyed it. Less than 90 minutes over to Orlando for the parks so we saved lots of $$$ on hotels by doing day trips when we visited them. They considered Jacksonville but found it was noticeably colder in the winter just that little bit more to the north.

Noticeably colder seems (to me) to be a relative thing, that's because I'm up here in the midwest, where winters are brrrrrr. I wouldn't mind the sweater/jacket thing for a few months, but am curious more about quality of life and opportunities.

 

[Rich]

No, what I meant was to buy a small place and live there to avoid NYC and NY taxes on my withdrawal taxable income. If I only have to live there for more than 6 months, it would be worth it. I thought I had to live there 12 months out of the year. From NYC and NY taxes that I will save, I can live for almost free.

Sandhog, I don't think your plan will work. There was a recent NY State tax court ruling that basically stated if you just own a residence in NY State that is habitable during any part of the year you owe NY (city and state) taxes as a resident. Sounds strange, but do a Google search and it'll come up.

To quote from a site commenting on this recent case:
( New York's non-resident residency tax )

"So to clarify, this case is really about New York State wanting to tax the Barkers on all their income from everywhere, even though the Barkers are not actually New York “residents” — they are domiciled in Connecticut.

The Barkers claimed they should only be taxed on husband’s New York-derived income from his employment in Manhattan. New York state claims the Barkers must pay taxes on everything they make, from out-of-state to out-of-country income.

Or to ask it another way — does a non-resident of New York have to pay a residency tax which is a tax of all income they make any where?

The short answer is yes, if that non-resident maintains a property in New York, because then New York state considered that non-resident to actually be a resident."

Here's another commentary on the situation, taken from the site shown below"

"But now, you don't live there, but you have an apartment that you're at two or three times a year? All of your income is subject to New York state tax. A court has said it! This is not the New York tax authorities. This is not Albany. This is a New York court."

( http://www.rushlimbaugh.com/home/daily/site_021111/content/01125115.guest.html )

Best of luck,


Rich Cape Cod

 

[M Paquette]

"But now, you don't live there, but you have an apartment that you're at two or three times a year? All of your income is subject to New York state tax. A court has said it! This is not the New York tax authorities. This is not Albany. This is a New York court."

( Judge: Out-of-State NY Property Owners Must Pay NY Income Tax )

Ah, I don't know if I'd entirely trust that site for tax preparation advice.

I've done this drill for my older daughter the past 3 years. As a part-year resident, or a non-resident maintaining a part-year address in New York, you would experience the joy and majesty of the IT-203 series tax forms. On page 18 of the instructions there is a worksheet. It's pretty clear how to do this calculation, and it really hasn't changed much over time.

You put your total federal taxable income in Column A. Column B gets the part of Column A earned while NOT a resident. Column C gets the part of Column B from New York State sources. Column D gets the part of Column A earned while a resident.

Column E gets the sum of Column C and Column D, that is, all New York State income earned while not a resident, plus ALL income earned while a resident.

If you were a resident for three days, and you are paid from a partnership, S corp, etc, evenly across the year, you'd prorate by days, reporting all New Your income, plus 3/365 of out of state income. If you get paid by the work day, then you use Form IT-203-B, which figures in Saturdays, Sundays, holidays, sick days, your vacation time and whatnot. It figures in all days you were in-state for work or personal business, except when traveling by common carrier (changing planes at JFK, for example). A complex set of operations, possibly involving chicken entrails, then determines the fraction of your out of state income that is taxable.

Like most states, all income earned in-state is taxable. The portion of out-of-state income earned while in state is also taxable. When you do your taxes for the state where you are resident most of the time (New Jersey or Conn.) you'll be taking a credit for the New York State tax.

New York's forms are definitely more of a pain in the a$$ than most states. And don't get me started on the MTA income tax for 1099ers.

 

[Sandhog]

You really need to tour Florida and find out where you fit . When we were looking I narrowed it down by what I wanted . Close Beaches , Good health care , shopping , reasonable home prices , public transportation for when I am older , restaurants and friendly people . We visited several times before we moved and then we rented for a year before buying a house . I also subscribed to the local newspaper for six months before we picked an area ( now you can do that online ).

So, where is this place exactly in Florida?

 

[Sandhog]

Sandhog, I don't think your plan will work. There was a recent NY State tax court ruling that basically stated if you just own a residence in NY State that is habitable during any part of the year you owe NY (city and state) taxes as a resident. Sounds strange, but do a Google search and it'll come up.


Best of luck,


Rich Cape Cod

Thank you for looking out for me, Rich. I don't own anything in NY. My house is owned by my ex-wife and I rent small studio apartment size of dorm room. I have an agreement with my ex-wife to live in her house (that I paid and made garage extension apartment) when kids are out of school and pay her rent. If that doesn't workout, I can stay with my friends while in NY. I intend to buy a converted van RV and travel but most in Florida for the first year of ER before buying something small.

 

[Rich]

Sandhog, sounds like your situation should be fine in regard NY taxes. For the record, I was born and raised in Brooklyn (till age 13 anyway). Bensonhurst area, went to PS 177 and PS 96.

Rich Cape Cod

 

[MichaelB]

As a former NY State resident audited multiple times for residency related issues, I do not see it that easy at all. (As I wrote previously) establishing Florida residency is simple and straightforward. Breaking off NY State tax obligation is more difficult for someone who still lives in the state even part of the year.

 

[chinaco]

....Bugs as big as your head from what I have heard...

Yes.... we were in the everglades about 10 years ago and DW was almost carried off by a mosquito the size of a small dragon!


Well... they aren't that big.... but when 300 of them zero in on you, in what feels like a coordinated attack... it is almost as bad.



Location.

For us it would be the coast... likely gulf coast. But we would rent or lease if it was not going to be our primary home.

 

[Moemg]

So, where is this place exactly in Florida?

I live on the border of Sarasota & Bradenton but when I first moved down to Florida I lived in Venice which is still my favorite Florida location. I moved to where I live now because I was still working and found a great job near this location.

 

[fisherman]

Yes.... we were in the everglades about 10 years ago and DW was almost carried off by a mosquito the size of a small dragon!


Well... they aren't that big.... but when 300 of them zero in on you, in what feels like a coordinated attack... it is almost as bad.



Location.

For us it would be the coast... likely gulf coast. But we would rent or lease if it was not going to be our primary home.

FL certainly has mosquitoes but in our experience in 48 of the 50 states the worst attacks we have had are Minnesota, South Dakota, and Alaska. Cannot speak for New Jersey or Michigan as we have not been there.

The southern mosquitoes are usually smaller and not as aggressive but all are disliked.

We spend some of the winter in the Sarasota, Venice area and love it! I have not spent a summer there so have no experience how that would be. We have spent part of the spring and fall there also and really liked it.

 

[Moemg]

I have lived in Florida for eleven years and have yet to see a mosquito . Palmetto bugs , Love bugs , fire ants , wasps but no mosquitoes . Whereas when I lived in New Jersey we had to have a bug zapper going all the time .

 

[Budman]

I have lived in Florida for eleven years and have yet to see a mosquito . Palmetto bugs , Love bugs , fire ants , wasps but no mosquitoes . Whereas when I lived in New Jersey we had to have a bug zapper going all the time .

But you didn't mention the no seeums which are worse than mosquitoes in Florida. I just hate them!

 

[Moemg]

But you didn't mention the no seeums which are worse than mosquitoes in Florida. I just hate them!

I haven't seen them !

 

[Sandhog]

Sandhog, sounds like your situation should be fine in regard NY taxes. For the record, I was born and raised in Brooklyn (till age 13 anyway). Bensonhurst area, went to PS 177 and PS 96.

Rich Cape Cod

A lot has change since then. You wouldn't believe real estate prices in Brooklyn. Something that I could have bought 20 years ago for about $35K is worth $850K.

I don't think NY is going to bother me too much. Not like those millionaires who has residence in Florida and business in NY and don't want to pay NY taxes. I recalled Rush Limbaugh went through hell with NY tax collectors and ended up paying NY back taxes and few other millionaires alike. However, I will be living on modest $36K a year plus part-time work if I want to take expensive vacations.

 

[Danmar]

Been to Florida many times and like the Sarasota area. However, recently have been coming down to Phoenix area and I think we like it better. Obviously too hot in the summer and winter can be jacket/sweater weather but spring and fall are superb. No bugs and lack of humidity are great. Considering a rental house next fall in Scottsdale.

 

[dlhanson]

We plan to buy a home in Sun City Center this summer. We have a sales contract on our current home which is scheduled to close in June. We have been winter snowbirds in Clearwater for the past two years.

We chose Sun City Center due to the relatively affordable cost (we are looking mainly at 1980's homes), closeness to Sarasota and Tampa, lots of u-pick veggie farms and some u-pick orange groves, and the climate (DW is from Malaysia and loves lots of heat). We have made friends at a Church in Brandenton last winter.

 

[JOHNNIE36]

We plan to buy a home in Sun City Center this summer. We have a sales contract on our current home which is scheduled to close in June. We have been winter snowbirds in Clearwater for the past two years.

We chose Sun City Center due to the relatively affordable cost (we are looking mainly at 1980's homes), closeness to Sarasota and Tampa, lots of u-pick veggie farms and some u-pick orange groves, and the climate (DW is from Malaysia and loves lots of heat). We have made friends at a Church in Brandenton last winter.

Hey, hope it will be "welcome to the neighborhood". Live in Sun City Center myself. Been here just over one year and love it. If I can be of any help, just let me know via private message. Can talk about the various neighborhoods, amenities, golf, etc. Maybe you have got this all figured out. If you could use a good realtor, let me know. Hope you will enjoy it as much as we do.

 

[FreeAtLast]

My home is in Plantation which is the city just west of Fort Lauderdale. I finished college at the U of Miami met my late wife and just stayed here and raised our family. Florida is a very diverse state so you have to check out the different areas. I think that the Ft Lauderdale area has a good balance for what I need. The schools were lacking but we chose private school, however, I am sure that is not a top consideration for anyone here anymore.

I am starting to think about spending the summers up north. The summers seem longer and harder to take as I get older. I am only semi retired at this point, however, I can probably work out an arrangement with my employer to work remotely for a few months during the summer. I was in NY in the middle of February after all of the storms. I sure don't want to live in the snow at this point.

 

[msully76]

Love Naples

Retired on my 56th birthday last August and just returned from my first winter in Naples. It was beautiful. Great beaches, restaurants and lots to do. Some say it is expensive but after seeing some of the other messages it doesn't seem to me that 3 months there was any more expensive than other places. It is usually 5-10 degrees warmer in the winter than Venice, Tampa, and Sarasota which can make a nice difference.
I agree with some of the other posts regarding buying: If you only want to be there for the winter you are better off renting.

Related note: Wasn't sure if retiring was going to be for me but the winter in Naples made that a non issue, have already signed a lease for next year.

 

[Skimmer]

We own a home on the East Coast in Merritt Island, and the West Coast in Palmetto. Both coasts have their pluses and minuses. We love boating and the water, so the Gulf Coast is great for that, plus the beaches are nicer and the water is calmer, clearer on the Gulf Coast. The East is great for the constant sea breeze, it's not as hot as Orlando or the West Coast. Less people here too, but also less public transportation, the county is the longest county in Florida, so everything is spread out. Viera is a nice, new area where lots of retirees are buying. Nice shopping at the Avenues, new VA hospital, and Space Coast Stadium for baseball. I was born in Tampa and wouldn't move back there due to the horrible traffic.

 

[teejayevans]

You really need to tour Florida and find out where you fit . When we were looking I narrowed it down by what I wanted . Close Beaches , Good health care , shopping , reasonable home prices , public transportation for when I am older , restaurants and friendly people . We visited several times before we moved and then we rented for a year before buying a house . I also subscribed to the local newspaper for six months before we picked an area ( now you can do that online ).

Port St. Lucie area fits the fill, with maybe exception for public trans.
If you like bigger cities, areas around Tampa would work.
Also some place called the Villages that is for 55+ I think, heard a lot of people like it.
TJ

 

[roadkill]

MSULLY76 - How did you arrange to locate a place to stay in Naples from Boston? Did you physically go down and look around, use a realtor, stay with friends until you located a place, etc? I live in PA and would like to explore Naples as well, but not sure as to the best way to approach the process of finding a suitable place to stay. Thanks.

 

[ronlitton]

One suggestion is to check the hurricane path patterns for the last 20+ years, to avoid the areas they frequent. Personally, I'd suggest North Central Florida, not far from both I-75 (north-south) and I-10 (East-west). It's not very cold in winter, about 4-7 nights below 32 degrees in winter, and not as hot and muggy as further south in Florida. Anywhere between Tallahassee and Lake City. If you're building a house, make sure it's "hurricane proof".

 

[msully76]

Love Naples

Roadkill:
Since I had vacationed there for several years prior I was very familiar with Naples and I knew the exact area that I wanted to stay. I had stayed at a golf community and also rented a friend's condo near Venetian Village which is where we wanted to be. You can probably spend less by staying in a golf community but they are usually further away from the beach. You can either go online and find a real estate agent or go to a website that I believe is rentbyowner.com.

Good luck

 

[JOHNNIE36]

There is a very simple web site on rentals in Florida. It's called VRBO.