Domicle with rental property

I currently own a home in Idaho, which we intend to rent out when we go full time.  Is it possible to claim domicile in another state, (Tx) while owning property in Idaho.  At one point I owned property in 3 states, ( Id, Nv, Wa) while living in Idaho.  I know regardless I will have to file income tax in Idaho for for the income I earn on the rental property.  The majority of my income will be non-taxable outside of the rental property. 
Thanks

Each state defines "residency" differently. You may have to contact TX to find out what their requirements are. I would think that the DMV could give you these facts. I will be contacting them soon as I also wish to use TX as my main residency. Let us know what you find out....CnC

I see no problem doing that if you go through all the steps to establish your domicile in Texas.  Idaho is the state you have to satisfy so you should make your inquiries there, starting with the tax department.

You can run into severe tax penalties in some states if you maintain residency in two states.  Do your tax homework carefully.

You can have residences in several states but you only can have one state of domicile.  It's up to you to take all the steps to establish that domicile because if you don't, the states will do it for you, and not in your favor.  In the OP situation, the property in Idaho won't be a residence but an income property.  As long as they establish their domicile in Texas, there should be no problem, other than paying ID taxes on the ID income.

The only thing that makes this situation difficult is that cdat currently has Idaho as his domicile. He wants to retain his property in Idaho, but establish domicile somewhere else. That is entirely legal, but as a practical matter he has to convince Idaho that he is no longer domiciled there, even though he still has property there and earns income in that state.  Idaho is going to naturally try to continue the status quo. 

It's possible that there may little difference where cdat makes his domicile, since he will pay taxes on his Idaho property and income anyway. However, depending on Idaho tax laws, they may also try to tax other income earned outside of Idaho or collect personal property taxes or whatever. That needs to be researched in Idaho law and it may be advisable to get professional tax assistance if there is substantial taxable income at stake.

Gary, as you stated the biggest issue will be convincing Idaho that I have a new legal domicile.  Texas has no income tax on military or VA pensions, nor do they tax SSD.  Idaho taxes two of the previous, and has a rather stiff sales tax, (at least compared to Texas) 
I appreciate the info from all of you, all of you.  I am planning on seeing a state Tax specialist and will post the response when I get it.

Cdat,

The auditors of each state have different questions they ask to determine whether a person is domiciled there or elsewhere.  In your case they might ask whether you intend to return to your home in Idaho after a couple of years of fulltiming.  If the answer is yes then they might say Idaho is still your domicile because you're only renting it out temporarily.  If the answer is no then they might agree this is a rental income property and you are domiciled elsewhere.  People in this RV Forum have rented out their house for many years as a business and domiciled, for example, at the Escapees address in Texas.  These people are fulltimers and needed a domicile that was not their old home.  Where do you intend to vote?  Have your driver's license?  Register your vehicles?  Have church membership?  Have your doctors?  You can own property in numerous states, but you need to settle on one of them where you do all these things to establish your domicile.

When we left California I wrote to the Registrar of Voters to tell them we were no longer residents of the state.  We changed our address, driver's licenses, vehicle registrations, insurance, voter's registration, and anything else we could think of to our new state.  The one exception was brokerage accounts because they can be in any state and have nothing to do with domicile, as long as you have your new domicile address listed as your address on the account.  California has a hefty income tax so we wanted to make sure there would be no doubt about our non-resident status and it was a full year before we did anything that had state income tax implications.  During that year we filed with the IRS as residents of our new state.

ArdraF

All those items that Ardra mentioned are what I summarized as steps to take to establish domicile in a given state.  The most important factor in a domicile is your intent to remain there, or return there whenever you leave.  By registering to vote and drive, licensing vehicles, establishing bank accounts, mailing address, etc. all reinforce that you intend to return to that state.

Texas has no state income tax at all, not just certain items.  That's one of the main attractions for full timers.

Maybe RVForum should start a "Swap My Domicile" forum topic...like in this case, if anyone wants to get away from Texas heat to move to Idaho.



Robt.