Age old question - where to domicile

[ependydad]

We have been fulltiming for 4-months now and are giving real consideration to doing this long-term. Part of that decision is selecting a domicile.

Now, about us... I am in my mid-30s, work fulltime (regular 9-5 gig on a W2; company is based out of Virginia), have health insurance thru my work, and have 2 kids (ages 11 & 3; we are roadschooling the 11 year old). I have a bit of money in retirement accounts but won't be touching that for at least 30 years. And I make decent money at my 9-5. I still own our home in Maryland but are renting it out via a property management company (I figure I can rent it for up to 3 years before dealing with capital gains taxes). We already bought a truck and camper (back in 2012).

At this time, I'm not interested in buying land or establishing a home anywhere.

I know the classic answer is pick a state with no income tax and I can find those lists. I can also find a state that is more amenable to homeschooling than Maryland is- I can find the lists for that.

I guess I'm trying to figure out how I look at the other things (car registrations and insurances, I guess). What else is there to look at? And how do you look into those things?

(Edited to add answers to questions mentioned in replies.)

[TechWriter]

Cummins12V98 wrote:
"I would think Idaho's income tax alone would rule them out as an RV'er domicile state"

EXACTLY

Depends.

If you're under 65 and need to buy health insurance, then selecting a domicile state (and county) that offers a nationwide PPO plan becomes real important if you plan on traveling around the country.

That rules out SD and TX. But other states offer nationwide PPO plans (typically BCBS) -- FL, AL, NV, ID, LA, WA etc. NV and WA also have no state income taxes.

Another consideration is vehicle registration & titling . . . some states, like NV and ID, have yearly fees based on a vehicle's current value.

Also, since a lot of states don't tax social security & allow all kinds of deductions, don't let just a lack of a state income tax dictate your domicile choice.

Finally, don't pick a domicile just because of a mail forwarding service.

[Cummins12V98]

"I would think Idaho's income tax alone would rule them out as an RV'er domicile state"

EXACTLY

[Dutch_12078]

allen8106 wrote:
From what I've read most full timers use either Idaho, Florida or Texas. I have read where it's getting harder to do in Texas. Based on everything I've seen Idaho is the best bet.

I would think Idaho's income tax alone would rule them out as an RV'er domicile state.

[carl2591]

that is interesting.. I have been reading on this subject for a while now and this is the first time i remember hearing Idaho as a place to domicile.

Can you explain why Idaho is a good place to call "home" vs florida.

I do like potatoes but not that much. 🙂

PS I would not choose Texas just based on their whacked view of women's/ girls rights and most of the health insurers are leaving the state. Plus in my mind the gov. is a lunatic.

allen8106 wrote:
From what I've read most full timers use either Idaho, Florida or Texas. I have read where it's getting harder to do in Texas. Based on everything I've seen Idaho is the best bet.

[Cummins12V98]

I would suggest anyone looking for a mail service and Domicile help contact this lady. She knows her stuff! She can answer all your questions and help you with all the forms needed for SD Domicile.

Terri Lund
My Dakota Address
110 E. Center St.
Madison, SD 57042
www.mydakotaaddress.com
Phone: 605-427-5863
Fax: 605-427-9626

[allen8106]

From what I've read most full timers use either Idaho, Florida or Texas. I have read where it's getting harder to do in Texas. Based on everything I've seen Idaho is the best bet.

[EricHarmon]

Merrykalia wrote:
I don't live there, but take a look at TN. They have no income tax, in certain sections (northeast TN counties) have really low property taxes, they have pretty easy home-schooling rules/regulations.

Look at purchasing a small farm acreage in one of the counties that have little/no zoning (yes, those do exist), where you can park your RV if/when you need to sit for a spell for health reasons or whatever.

I'm not an attorney, CPA, tax expert, etc., but I do have a few friends that have done this and have a few acres of property in a county with few zoning, have a camper pad with services that cost them less than $15,000. During the spring and fall, they will park there, then head off to other areas during the winter (think warm weather) and during the summer (think cooler, northern weather).

Grainger, Hawkins, Unicoi Counties are 3 that I know of that have fewer zoning regulations, they are just on the borders of Kentucky/Virginia, but have quick access to healthcare at Knoxville or the Tri-Cities (Bristol,Kingsport,Johnson City).

I live in Maryville, TN. There is no income tax on W-2s, but there *is* income tax on dividends, interest, capital gains (even on so-called "exempt" earnings). I believe it's 6%, so if you have much dividend income, you could easily pay a couple thousand to the state.

[Naio]

ependydad wrote:
I do like the sound of St. Brendan's - does anywhere else do this kind of scanning?

Yes, lots of places.

Alternately, I use a small office run by a friend of a friend. They will scan if I ask, or just open my mail and read it to me. Or forward without opening, if I want that. Small businesses can be very flexible.

[monkey44]

ependydad wrote:
I do like the sound of St. Brendan's - does anywhere else do this kind of scanning?

Don't know if any other mail companies do scanning, or not, but I expect most will do it for a fee.

But, we've been hooked up with ST Brendan's Isle for several years, and they are a first class operation. Pretty much instant answers to any question on the phone or email. Not only have they done a great job with our mail over the years, but we've had the occasion to stop in person numerous times as well. Very clean shop, very courteous folks working there. Just sayin' ...

[JimM68]

ependydad wrote:

2gypsies wrote:
This office is endorsed by the Escapees RV Club and could help you with domicile questions or lead you in the right direction. They deal with full-timers all the time.

http://www.loringlaw.com/

Thanks!

I called them last week. Was told that their next available appoint for a free telephone consultaion was December 17. What?

[2gypsies1]

carl2591 wrote:
everyone is moving to florida.. warmer, better insurance etc..

Keep in mind that full-timers seeking a domicile state don't have to move there. They don't even have to visit their domicile state unless it's a requirement for a one-day trip to renew the driver's license.

[carl2591]

I have heard a lot of folks have switched from SD to FLorida.. Seems SD has changed some stuff with drivers licence.. and the health coverage has sucked from the start of the ACA, obama care, plus some other stuff a guy was telling me who is a fulltime RV domiciled in SD..

He was telling me they (SD) are working on it as they are loosing a lot of "citizens" do to lack of good nation wide health insurance coverage. everyone is moving to florida.. warmer, better insurance etc..

[hitchup]

Scottiemom wrote:
One thing to consider. . . do you have a mortgage exemption which lowers your property taxes on your home you rent out? If so, changing residency to another state means you will lose that exemption. How much is it? The taxes on our rental home are double what they would be if we lived there instead of full time in our motorhome. That must be calculated in the cost of going full time. If you maintain your exemption on it, then you taking an exemption that is only available to residents of the state, but you're not. How does your mortgage company feel about that?

You can still take the Interest Paid on the mortgage as a valid Income Tax deduction. And if the RV has a loan, then there is a 2nd interest to take.

[Scottiemom]

ependydad wrote:

Scottiemom wrote:
One thing to consider. . . do you have a mortgage exemption which lowers your property taxes on your home you rent out? If so, changing residency to another state means you will lose that exemption. How much is it? The taxes on our rental home are double what they would be if we lived there instead of full time in our motorhome. That must be calculated in the cost of going full time. If you maintain your exemption on it, then you taking an exemption that is only available to residents of the state, but you're not. How does your mortgage company feel about that?

Need to inquire about that.

Dale

Dale, this is a very good question and not one that I know the answer to. Do I start with the mortgage company? Or somewhere else?

I think OutdoorPhotographer is correct. In Indiana you must meet several requirements for an exemption, including that it must be your primary residence and it must be owner occupied. Yours is neither. Vacation homes and rental properties are not eligible. We full time, our motorhome is our primary residence. The home we rent out was never our home and we do not claim an exemption for it. We have to file taxes in the state it is located in for that rental income, but we do file as a non-resident.

So if you keep your exemption and establish a domicile elsewhere, you are sending up a red flag. You can only have one domicile. The link to loringlaw might offer you a chance to ask some questions.

Dale