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Author Topic: Any Fulltimers from MD - Question on changing domicile  (Read 4083 times)

Python49

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Any Fulltimers from MD - Question on changing domicile
« on: December 18, 2009, 11:01:29 AM »
Was wondering if anyone here from MD changed their domicile and what steps they took to do so and if any problems?  I am planning to travel and wanted to change my residency before doing so, so I was planning to just go to South Dakota or Florida and register to vote, get drivers license, mail forwarding service, and open a bank account and was wondering if this would be good enough?  I'm going to do it on Jan 1 so im planning to just file all of 2010 calendar year as FL or SD resident, should this be ok?

Smoky

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Re: Any Fulltimers from MD - Question on changing domicile
« Reply #1 on: December 18, 2009, 11:28:06 AM »
Do you have an existing RV or are you planning to buy a new one when you do this?

Do you have property to sell?

January 1 would be an ideal time to make a clean tax filing situation.

I lived in Maryland and did this in 2005.  I spent a LOT of timing researching this.  It was complicated by my buying a new motorcoach at the same time.

One thing I found out AND THIS IS IMPORTANT ... the laws are VERY specific for the combination  of each old - new state of residence.  I think that is 48x48 different combinations.  Hmmm 50x50 combinations?  Am I showing my age?

You have simplified it by limiting your to and from state.  At most you will have two sets of regulations for MD/SD or MD/FL.

I moved from Maryland to Montana.  What I say may or may not apply to your case.

A couple of things DO apply to the MD side of the deal.

MD will consider you a MD resident if you are in MD for 6 months or more of the year.  So in order for me to buy a new coach as a MT resident I had to buy it before July 1.  I bought it on June 5 as I recall.  I flew out to Montana and opened a bank account, rented a lot, then installed electric and produced proof of the rental agreement and the utility bill and the bank account.  This was required by Montana law before they would accept my residency.

Then they accepted my Maryland driver license and replaced it with a Montana license good for 7 years.

They would not issue Montana tags until I obtained the Montana driver license.  I also had to pass an eye exam to get the license.

Fortunately Maryland law (at least in 2005 you have to make sure it is still the same) allows you to purchase a coach from a Maryland dealer and then show him a Montana driver license as proof of residence.

I never researched Florida, but I did learn that in South Dakota this procedure will not work as they will charge you the difference between their sales tax and your old state sales tax.  None of this is important if you are not buying an RV in Maryland.

The main point to remember is to check the laws of both states to determine residency requirement.  Some combinations of states have conflicting rules.  I know Arizona and many western states have conflicting rules regarding residency and work income.  For example if you are employed in Arizona for just one day, they will classify you as a resident no matter where you are from.  There are some exceptions (example a contract employee for less than 30 days).

Good luck.  Everything is possible but you must be very very careful of potholes.

Smoky S  Ham radio - W3PY

The magic of a campfire
where the fish get bigger
the mountains get higher
the hike was uphill both ways
and new friends become old friends

2005 KSDP3910 Newmar Kountry Star
Toad - Taurus wagon w/ axle lock
On our way to the Poudre River in Colorado for the summer!

Python49

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Re: Any Fulltimers from MD - Question on changing domicile
« Reply #2 on: December 19, 2009, 04:40:28 AM »
Hey, thanks for the lengthy reply.  I'm not buying an RV or anything.  I actually am just trying to change my domiciliary before traveling outside of the country where I plan to be for most of the year.  I am 24 years old and do not own any property or have my name on any vehicles or assets in MD.  I'm essentially just a college student that came home to my parents house in MD and would like to become a legal resident of a different state before traveling outside of the country.  I called up the maryland tax payer services and they told me the things that I would need to do and on the phone they made it seem very simple.  I called up and spoke to 4 different representatives who basically all told me that all I'd need to do is move to a new state and if I do it on Jan1st I wouldn't have to file part year resident anywhere and for 2010 I would just file taxes with the new state I'm in.  

They all pretty much told me that I shouldn't even hear from MD since the only reason I would hear from them is if there is some discrepancy from like an employer where they are showing me as an MD resident but other than that they said I would essentially just file taxes the next year with my new state.  They said that if it ever comes into question they will look to see where im registered to vote, my drivers license, if I have a bank account there and also if I have an address there.  I'm pretty sure this would be much simpler if I were going to be living in the new state for the whole year but since I know I will be traveling outside of the country after 2 months of being there I just want to make sure that I legally comply in the event in the future they want to charge me taxes for MD.  I 100% do want to change my residency and move so if its all about intent then my intent is certainly there, just have to prove it.  

My plan was just fly to different state, register to vote, change drivers license, open bank account, and either get a PO Box, mail forwarding service, or just outright rent an apartment for 3 months and pay for it (i think this would be safer in the event it's ever in question).  I called up the Maryland state nexus too to find out what things they look for during an audit and he told me basically the same list.  I think this should be fine but just want to be sure Im covering all my bases.  For getting domiciled in the new state of FL or SD the process doesn't seem that hard and SD looks to be the easier one so I may go with that.  I don't have any property to sell off here in MD and no cars in my name in MD... just a joint bank account with my mom but that's all the ties I have.  

I really got the impression when talking to the people on the phone that it won't even be a problem and I would just file with a different state... just wanted to make sure this covers everything.  
« Last Edit: December 19, 2009, 04:42:39 AM by Python49 »

Smoky

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Re: Any Fulltimers from MD - Question on changing domicile
« Reply #3 on: December 19, 2009, 08:03:02 AM »
Looks very straightforward to me.  I think you have your bases covered.  Good look on the trip and the move.

Smoky S  Ham radio - W3PY

The magic of a campfire
where the fish get bigger
the mountains get higher
the hike was uphill both ways
and new friends become old friends

2005 KSDP3910 Newmar Kountry Star
Toad - Taurus wagon w/ axle lock
On our way to the Poudre River in Colorado for the summer!

Gary RV_Wizard

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Re: Any Fulltimers from MD - Question on changing domicile
« Reply #4 on: December 19, 2009, 08:14:11 AM »
Your only problem is meeting the requirements of the new state to obtain a driver license, voter registration card, etc.  Right now I think SD is the easiest, since Florida has just implemented the new federal recommendation for validating proof of ID before issuing driver licenses and other official forms of ID. They will demand at least two forms of proof that you are who who say and have a valid address. It even applies to people renewing their existing Florida DL, so a newcomer may have it even tougher.
Gary
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Gary Brinck
Summers: Black Mountain, NC
Home: Ocala National Forest, FL

Python49

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Re: Any Fulltimers from MD - Question on changing domicile
« Reply #5 on: December 19, 2009, 09:28:39 AM »
hmmm, for validating proof of ID would my license in my current state prove that I am who I say I am as well as a passport?  As for the valid address would a mail forwarding service address or PO box work?  If not I guess I could just outright rent a place for 3 month lease which is what I was thinking might be good anyway as further evidence of intent to move there?  My only concern is if maryland did come asking for proof and I showed them I rented a place for 3 months in the new state and then didn't live in that state the entire rest of the year if it would be a problem?  I would hope not since if I did move to a different state and lived there for 3 months straight and did everything else to become domiciled, im still legally allowed to travel outside the country if I want....

Smoky

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Re: Any Fulltimers from MD - Question on changing domicile
« Reply #6 on: December 19, 2009, 06:02:26 PM »
Python:

This discussion further demonstrates how fragile the question of domicile is.  And it might get worse as states scratch around trying to preserve their tax base in a bad economy.  It is especially difficult for full timers.  Last year there was a big case in Tennessee where RVers were not allowed to vote.  Arizona is coming down on people who work in their state.  Being an East Coaster 5 years ago where people cross state boundaries all the time to go from home to work, this caught me by surprise.  As a result I am considering moving my domicile to Arizona.  It is either that, or work only in the summer when I am on the move elsewhere.

Anyways, MD has not been an active state so far in these matters as opposed to states like Arizona, California, Colorado, Florida, and others.  Document all you do including your conversations so far with state authorities.

Smoky S  Ham radio - W3PY

The magic of a campfire
where the fish get bigger
the mountains get higher
the hike was uphill both ways
and new friends become old friends

2005 KSDP3910 Newmar Kountry Star
Toad - Taurus wagon w/ axle lock
On our way to the Poudre River in Colorado for the summer!

ArdraF

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Re: Any Fulltimers from MD - Question on changing domicile
« Reply #7 on: December 19, 2009, 06:35:10 PM »
Are you planning on working in another country?  If so, you need to check not only taxing in that country, but also your US employer home state taxing rules.  Earned income can be taxed in the country you earn it, as well as the state in which your American employer is based.  When Jerry gave seminars out of the country he had to pay taxes in Australia, Canada, and Venezuela and they had to be reported to the IRS.  The various countries have tax treaties so you need to know about that too.  Obviously, as you're finding out, this is not an easy-to-solve issue and you really need to do your research before making any decision!

ArdraF
ArdraF
:D :D

Python49

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Re: Any Fulltimers from MD - Question on changing domicile
« Reply #8 on: December 19, 2009, 09:50:38 PM »
yeah I am going to be working from online and am familiar with the federal taxes and international taxes so I'm mainly just concerned with state taxes and as far as those go, my research has basically told me that it depends on where you are legally domiciled to before you leave the country, for example a state like md taxes you even if you are away for years in a different country unless you changed your domicile before leaving and a state with no state income taxes won't tax you.  So yeah I'm planning on working from online in a different country but I'm really just interested in figuring out the state taxes issue.

LindaH

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Re: Any Fulltimers from MD - Question on changing domicile
« Reply #9 on: December 20, 2009, 09:23:18 AM »
Right now I think SD is the easiest, since Florida has just implemented the new federal recommendation for validating proof of ID before issuing driver licenses and other official forms of ID. They will demand at least two forms of proof that you are who who say and have a valid address.
South Dakota just made the same changes.  Alternative Resources' website has a pretty good write-up of the new changes.
LindaH
2007 30RKE Excel Classic
2007 Dodge Ram 3500 w/Cummins & duallies
http://earl-linda.blogspot.com/

Gary RV_Wizard

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Re: Any Fulltimers from MD - Question on changing domicile
« Reply #10 on: December 20, 2009, 09:44:25 AM »
All the states will be doing this - they are under a lot of pressure from the feds to make their driving licenses a reliable form of ID. Since the US does not have national identity cards, they are striving to make passports and driving licenses a verified form of ID.
Gary
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Gary Brinck
Summers: Black Mountain, NC
Home: Ocala National Forest, FL

mrbirdguy

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Re: Any Fulltimers from MD - Question on changing domicile
« Reply #11 on: February 23, 2010, 07:36:15 PM »
I am concidering the same. Thing I am trying to figure out how to afford a artic fox 27-5l fith weel its is on the upper limits of my truck I think but dowable parents have a farm so parking it there is no big deal I want my own place but don't want a morgage or pay someone elses. I am not after a Morgage ( rv / truck payment) or high utility bills it is just me my dog (bordercollie) and probably someday 2 sugar gliders. My main reasion is that I want to live life on my own terms someday and work part of the year. Partly for sompting to do. To many people in my family arnt trying to head toards retirement I want to. Beable to I am only 27 what to do ? What should I do? Any thoughts

 

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