If I Buy A Second Home in Nevada, Can I Claim Nevada As My Resident State

Here’s a tax question I got from one of my clients: “I’m paying almost 10% CA income tax. If I buy a second home in Nevada, can I claim Nevada as my resident state?”

Great question!

Hello, this is Noel Dalmacio, your ultimate CPA at LowerMyTaxNow.

You know what she’s trying to do right? She wants to avoid paying the CA tax and take advantage of Nevada’s “0” state tax! I don’t blame her! So, what’s the answer to her question? Well, I will answer it with my two favorite words: “it depends”. Here are few things you need to consider if you want to be a resident of a tax-free state:

Document it – you need to show that you spend more than half a year in the state that you consider your permanent home. You need to keep a diary or a log showing the number of days you spend in each state.

Prove it – in order to prove your new state residency, you need to do the following: change your driver’s license & car registration, register to vote, apply for a library card, find a new doctor in the new area, file a Declaration of Domicile (intent to live), open a local bank account, shop locally, get a hunting or fishing license, cut ties with the old resident state.

There you have it. So try to document and prove it if you want to become a resident of a tax-free state.

If you like to learn more, click the link lowermytaxnow.com and sign-in to receive my weekly blog.

Until then, this is Noel Dalmacio, your ultimate CPA at lowermytaxnow.com.

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Noel Dalmacio, CPA, CFP, MS TAX
30 Corporate Park, Suite 102.
Irvine, CA 92606

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