Changing domicile before buying - RV-Dreams Community Forum

injunear · RV-Dreams Family Member

Changing domicile before buying

Technomadia · RV-Dreams Family Member

As with many things in life... the answer will come down to... 'it depends'.

With your wife not retiring for another year, I'm assuming you're planning to continuing living & working out of Indiana for another year - and even keeping your new MH parked there during this time? Do you currently own real estate there as well? If so - it sounds like you're trying to avoid paying taxes while still continuing to 'enjoy' the benefits of living in your current state - and that could be a potential tricky mess.

To change domicile, you'll need to be prepared to switch driver's licenses, insurance, bills, etc. to the new state. It is moving.. on paper. If you're both still living & working in Indiana, it could prove quite difficult to prove that you've moved out of your current state and cut all ties.

- Cherie

Racerguy · RV-Dreams Family Member

Many people including some States call it tax evasion.I would search the forum here and find Howard's opinion on this.I think you would be skating on very thin ice.There were some cases in Colorado where people were heavily fined for doing similar to what you mention.I would contact a good tax Lawyer for advise....Not one of those in Montana who make their living setting these things up.Cherie makes very good points.

-- Edited by Racerguy on Tuesday 29th of May 2012 10:05:29 AM

injunear · RV-Dreams Family Member

Thanks Cherie and George,

We own two homes one in IN and one in TN. Both of which are for sale.

I'd rather pay the tax than the penalty. Just wasn't sure of how that would work.

Wayne

Neil and Connie · RV-Dreams Family Member

I would think that almost a year out is too early to change your domicile and not have IN ask questions about it…especially if you will continue to own property and live in it until April.

We shifted our residency in Feb for purchase in April and house sale in June…since we registered our RV in SD this month for a June delivery we decided we can justify the time interval with all that must be done. I'm sure if we actually asked VA they would say no, you have to be a resident as long as you own property here; but considering we were FL residents with FL tags for years while owning property here I'm guessing that it's one of those gray areas that you're better not asking officially about.

YMMV of course…one should only do what one is comfortable with when venturing into these kinds of gray areas.

Bozzi · RV-Dreams Community Member

I also live in IN and will be buying a RV next year and have thought about becoming a resident of SD before buying the RV. The thing for me is I own a farm here in IN and rent it out and will keep the farm and use the rental income for my travels. I talked with my tax accountant he told me I will still have to pay state income tax in IN for the rental income. I will be selling my house next year to a niece, I have pretty much decided to bite the bullet and stay a resident of IN pay the taxes rather then go through all the hassle of changing. Another issure for me is health insurance I still have to provide my own health insurance since I;m not retirement age and getting new health insurance in another state may be a problem. I found the whole issure of Domicile very complicated for myself and think the best is just keep things the same. My neice told me she will collect my mail and forward it to me.

sower volunteers · RV-Dreams Community Member

we were former indiana residents and now domicile in south dakota. we changed our residency once the house sale was final. it was also about the time for renewal of our indiana vehicle plates and registration. a good mail service will take care of everything to get you established and it doesn't take long. they will get your registration and plates but you will have to go to the state to get your drivers license. going to south dakota eliminated our income tax, personal property tax, and sales tax on new vehicle purchase. they only charge a one time 3% excise tax when you purchase a new or used vehicle or trailer.

3fortheroad · RV-Dreams Family Member

We have been full time now for 2 years now, we no longer own any property in Idaho but we still list Idaho as our home address and use a mail forwarding service there. Even though I can go to any VA medical facility if needed I still prefer seeing the Drs. in Boise that I know for my check-ups. As far as taxes and vehicle registration fees Idaho is not the lowest but lower than most states. I grew up in Idaho and besides my three year contract with the Army 67 thru 70 all my working years have been in Idaho. Most of my family and friends are in Idaho, so for a few hundred dollars a year I will remain an Idahoan and not worry about Big Brother looking over my shoulder.