[bob2007]

PatentGuy, I agree with you, and so does the history of government taxation.

[bob2007]

PatentGuy, I agree with you, and so does the history of government taxation.

[bob2007]

Thanks for the info. I’ve got a similar situation, but unfortunately much less to pull out ;). If I just that the income tax issue alone I have to compare $10k tax for every $100k. So do I move for $20k? No, considering what it would cost to move. $100k (if I had that much)? Yes, but in between there I’m not sure.

So your tax amount of $50k is right in the middle for me. In my case I’d burn half that moving, selling the house, buying a new house, fixing new house issues, etc. The down side is leaving our friends and an area we enjoy. Your situation probably has other factors as well.

[quote=PatentGuy]Bob2007 asks “why not relocate now?”, especially to quit paying high state income taxes. Good question.

I’ve met more than one self-employed professional who maintains their primary residence in NV (or FL) just for income tax reasons, but still spends lots of time in Silicon Valley for work reasons.

[bob2007]

Thanks for the info. I’ve got a similar situation, but unfortunately much less to pull out ;). If I just that the income tax issue alone I have to compare $10k tax for every $100k. So do I move for $20k? No, considering what it would cost to move. $100k (if I had that much)? Yes, but in between there I’m not sure.

So your tax amount of $50k is right in the middle for me. In my case I’d burn half that moving, selling the house, buying a new house, fixing new house issues, etc. The down side is leaving our friends and an area we enjoy. Your situation probably has other factors as well.

[quote=PatentGuy]Bob2007 asks “why not relocate now?”, especially to quit paying high state income taxes. Good question.

I’ve met more than one self-employed professional who maintains their primary residence in NV (or FL) just for income tax reasons, but still spends lots of time in Silicon Valley for work reasons.

[bob2007]

Thanks for the info. I’ve got a similar situation, but unfortunately much less to pull out ;). If I just that the income tax issue alone I have to compare $10k tax for every $100k. So do I move for $20k? No, considering what it would cost to move. $100k (if I had that much)? Yes, but in between there I’m not sure.

So your tax amount of $50k is right in the middle for me. In my case I’d burn half that moving, selling the house, buying a new house, fixing new house issues, etc. The down side is leaving our friends and an area we enjoy. Your situation probably has other factors as well.

[quote=PatentGuy]Bob2007 asks “why not relocate now?”, especially to quit paying high state income taxes. Good question.

I’ve met more than one self-employed professional who maintains their primary residence in NV (or FL) just for income tax reasons, but still spends lots of time in Silicon Valley for work reasons.

[bob2007]

Thanks for the info. I’ve got a similar situation, but unfortunately much less to pull out ;). If I just that the income tax issue alone I have to compare $10k tax for every $100k. So do I move for $20k? No, considering what it would cost to move. $100k (if I had that much)? Yes, but in between there I’m not sure.

So your tax amount of $50k is right in the middle for me. In my case I’d burn half that moving, selling the house, buying a new house, fixing new house issues, etc. The down side is leaving our friends and an area we enjoy. Your situation probably has other factors as well.

[quote=PatentGuy]Bob2007 asks “why not relocate now?”, especially to quit paying high state income taxes. Good question.

I’ve met more than one self-employed professional who maintains their primary residence in NV (or FL) just for income tax reasons, but still spends lots of time in Silicon Valley for work reasons.

[bob2007]

Thanks for the info. I’ve got a similar situation, but unfortunately much less to pull out ;). If I just that the income tax issue alone I have to compare $10k tax for every $100k. So do I move for $20k? No, considering what it would cost to move. $100k (if I had that much)? Yes, but in between there I’m not sure.

So your tax amount of $50k is right in the middle for me. In my case I’d burn half that moving, selling the house, buying a new house, fixing new house issues, etc. The down side is leaving our friends and an area we enjoy. Your situation probably has other factors as well.

[quote=PatentGuy]Bob2007 asks “why not relocate now?”, especially to quit paying high state income taxes. Good question.

I’ve met more than one self-employed professional who maintains their primary residence in NV (or FL) just for income tax reasons, but still spends lots of time in Silicon Valley for work reasons.

[bob2007]

I’m new to state tax burden research, but found some information from the Tax Foundation that compares what they call the total tax burden rate of a state, which includes state income tax, property tax, sales tax, gas tax, etc.

http://www.taxfoundation.org/taxdata/show/335.html

California is 6 at 10.5%, New Hampshire is 46 at 7.6%. So the spread is 2.9%. So taking a lump sum of money would be subject to the income tax, so that could be 10% vs 0, but from this data it looks like living in a 0 income tax state isn’t as big a reduction as I thought it would be. Definitely interested in other comments or experience.

[bob2007]

I’m new to state tax burden research, but found some information from the Tax Foundation that compares what they call the total tax burden rate of a state, which includes state income tax, property tax, sales tax, gas tax, etc.

http://www.taxfoundation.org/taxdata/show/335.html

California is 6 at 10.5%, New Hampshire is 46 at 7.6%. So the spread is 2.9%. So taking a lump sum of money would be subject to the income tax, so that could be 10% vs 0, but from this data it looks like living in a 0 income tax state isn’t as big a reduction as I thought it would be. Definitely interested in other comments or experience.

[bob2007]

I’m new to state tax burden research, but found some information from the Tax Foundation that compares what they call the total tax burden rate of a state, which includes state income tax, property tax, sales tax, gas tax, etc.

http://www.taxfoundation.org/taxdata/show/335.html

California is 6 at 10.5%, New Hampshire is 46 at 7.6%. So the spread is 2.9%. So taking a lump sum of money would be subject to the income tax, so that could be 10% vs 0, but from this data it looks like living in a 0 income tax state isn’t as big a reduction as I thought it would be. Definitely interested in other comments or experience.

[bob2007]

I’m new to state tax burden research, but found some information from the Tax Foundation that compares what they call the total tax burden rate of a state, which includes state income tax, property tax, sales tax, gas tax, etc.

http://www.taxfoundation.org/taxdata/show/335.html

California is 6 at 10.5%, New Hampshire is 46 at 7.6%. So the spread is 2.9%. So taking a lump sum of money would be subject to the income tax, so that could be 10% vs 0, but from this data it looks like living in a 0 income tax state isn’t as big a reduction as I thought it would be. Definitely interested in other comments or experience.

[bob2007]

I’m new to state tax burden research, but found some information from the Tax Foundation that compares what they call the total tax burden rate of a state, which includes state income tax, property tax, sales tax, gas tax, etc.

http://www.taxfoundation.org/taxdata/show/335.html

California is 6 at 10.5%, New Hampshire is 46 at 7.6%. So the spread is 2.9%. So taking a lump sum of money would be subject to the income tax, so that could be 10% vs 0, but from this data it looks like living in a 0 income tax state isn’t as big a reduction as I thought it would be. Definitely interested in other comments or experience.

[bob2007]

PatentGuy

I’ve heard a few people say the same thing and its an interesting idea. Have you looked into that enough to compare all the taxes, like property tax, and does it still come out to be a significant (3% or more) advantage?

From another perspective, why not relocate now? That way a person would have time to make friends and know the area, rather than hitting it at retirement, plus you wouldn’t be paying the state tax now. Only asking because I’ve considered this myself.

=============================
Submitted by PatentGuy on April 24, 2010 – 5:49pm.

There is also the state tax, which is no small deal in California. We plan to move to a zero or low income tax state prior to taking any distributions from our tax deferred IRA/401K/CB Pension/403(b)/457 plans.

[bob2007]

PatentGuy

I’ve heard a few people say the same thing and its an interesting idea. Have you looked into that enough to compare all the taxes, like property tax, and does it still come out to be a significant (3% or more) advantage?

From another perspective, why not relocate now? That way a person would have time to make friends and know the area, rather than hitting it at retirement, plus you wouldn’t be paying the state tax now. Only asking because I’ve considered this myself.

=============================
Submitted by PatentGuy on April 24, 2010 – 5:49pm.

There is also the state tax, which is no small deal in California. We plan to move to a zero or low income tax state prior to taking any distributions from our tax deferred IRA/401K/CB Pension/403(b)/457 plans.

[bob2007]

PatentGuy

I’ve heard a few people say the same thing and its an interesting idea. Have you looked into that enough to compare all the taxes, like property tax, and does it still come out to be a significant (3% or more) advantage?

From another perspective, why not relocate now? That way a person would have time to make friends and know the area, rather than hitting it at retirement, plus you wouldn’t be paying the state tax now. Only asking because I’ve considered this myself.

=============================
Submitted by PatentGuy on April 24, 2010 – 5:49pm.

There is also the state tax, which is no small deal in California. We plan to move to a zero or low income tax state prior to taking any distributions from our tax deferred IRA/401K/CB Pension/403(b)/457 plans.

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