As the old saying goes, there are two things one cannot evade: death and taxes. While death is unavoidable, there is a way to avoid certain taxes.
Move to Florida.
When it comes to taxes and asset protection, Florida is one of our countryâ€™s friendliest states. Florida has no, I repeat, no income tax. Florida does not have any estate or inheritance taxes (a rare state attraction, indeed), and the Sunshine State offers homestead exemption to homeowners. Homestead exemption shields the residence from probate (in most cases), exempts the property from creditor claims during ownerâ€™s lifetime and after death, as well as limits the amount of tax increases or appraised property values imposed for real estate tax purposes. Tally these three significant tax benefits and a body saves a whopping personal sum in the long run.Â
I recommend that anyone considering relocation to Florida consult their tax attorney regarding a domicile change to our fair state. I understand that other states with stricter tax laws require proof of a personâ€™s relocation in order to remove the tax restrictions imposed by the former state. This is especially true if one retains a â€œsummerâ€ home in the previous state. Florida requires that a resident maintain a legitimate principal residence in Florida, but the number of days a person resides in Florida is not considered. However, the prior state may not recognize the legitimacy of a Florida resident if they reside in the prior state for more than 183 days. This makes consulting a tax professional important to make the residency change to Florida valid. By following the proper directives, some of them simple, such as obtaining a Florida driver's license and registering to vote in Florida, one can live an easier tax life here in Florida and not worry about losing the bulk of their hard-earned savings to the state government when their life is through.
Sounds to me like a great reason to live in Florida, where my home is literally, my castle, to keep, to save, to pass on to those I love.Â Welcome to Florida.Â Iâ€™ll be happy to open the door to your next home.