Full Timing Accounting Question

doxiemom11 wrote:
Look at( www.rvtaxhelp.com.) This is a full-time rver who is a tax person. She runs this website just to help answer tax questions for rvers. This question was asked of her and her response was that there is nothing in the tax laws that say you have to reside in the state where you own a home/property. You would simply file taxes in that state as a non-resident. We have our home rented out because it didn't sell either (MI) and we also have a city tax to file. Both are non-resident tax filings. You may find as we did that you do not owe any tax because there was no income in those locations other then rental income, which after expenses was not high enough to require a tax return to be filed.

We also have our house rented out (in CA) the management company deducts the CA taxes and sends tha money off to the state.We file CA taxes as a non resident,and get the money back,being as we are "residents of SD.The amount the rental earns is not enough to owe CA tax.
So it works as is explained in the above post The "rub" is that we have to pay the tax preparer to file the CA tax,to get back the tax money, that we did not owe in the first place,back.

Bumpyroad wrote:
as I recall, you must occupy that residence 3 of the last 5 years to be able to claim the exemption for a home sale. that exemption might be phased out, according to TV ads.
bumpy

It is 2 out of the last 5 to claim the exemption.

Look at( www.rvtaxhelp.com.) This is a full-time rver who is a tax person. She runs this website just to help answer tax questions for rvers. This question was asked of her and her response was that there is nothing in the tax laws that say you have to reside in the state where you own a home/property. You would simply file taxes in that state as a non-resident. We have our home rented out because it didn't sell either (MI) and we also have a city tax to file. Both are non-resident tax filings. You may find as we did that you do not owe any tax because there was no income in those locations other then rental income, which after expenses was not high enough to require a tax return to be filed.

Bumpyroad wrote:
as I recall, you must occupy that residence 3 of the last 5 years to be able to claim the exemption for a home sale. that exemption might be phased out, according to TV ads.
bumpy

That only matters if you make a profit on it and improvements, remodeled kitchens/baths/finished basements/upgrades etc, are deducted from that.

thank you for all the great info and guidance. Will pursue finding a tax expert in South Dakota also.

as I recall, you must occupy that residence 3 of the last 5 years to be able to claim the exemption for a home sale. that exemption might be phased out, according to TV ads.
bumpy

You're running a business by renting your "home" and are required to pay taxes on that, regardless of where you are living or domiciled.

You would be filing as a "Non-resident".

We changed domicile to SD, while still living on the farm in So. IN, awaiting the sale. That caused us no issues.

Regards
Gemstone

You can change domicile anytime you choose to. The homes will / could be treated as investments. But if you want accountant and tax advise, contact an accountant and pay their fee. Otherwise all you are getting is opinions, which could lead to IRS issues.