CLIENT KNOWLEDGE BASE

    Nexus Checklist: Moving States Tax Efficiently

    You cannot change your domicile by taking a temporary or longer than expected absence from YOUR HOME STATE. You must not intend to return. To change your domicile, you must have declared your intent and taken steps to do so. Your declaration of intent will be examined closely. If you assert that your domicile has changed, you bear the burden of proving that facts!

    Post COVID, the state taxing authorities are hot on this topic.  GO CPA has developed a checklist to ensure your properly cut ties from states.  Some of these steps may seem unnecessary, but review of Nexus court cases show the Departments of Revenue can win on small technicalities. 
    1. 1

      You've purchased or leased a new home or an apartment in the new location

    2. 2

      You've moved personal property to the new location

    3. 3

      You got permanent employment in the new location

      " If the taxpayer continues to own a State 1 business after moving to State 2, the taxpayer should ensure that he or she is not listed as the resident agent and that the contact information listed in the company directory lists the new State 2 address.
    4. 4

      You canceled State 1 bank accounts and opened new accounts in the new location

    5. 5

      You sold real property in State 1 and/or canceled leases

    6. 6

      You issued address change notices

      All banks, insurance providers, financials institutions, credit card, crypto wallets etc should be notified asap of address change. If you had a doctor or dentist in STATE 1, find new ones.  

      Change your phone record of address, notify the US Passport agency of address change, Trust/Estate - ensure the trusts are updated for new info
    7. 7

      You changed voter registration

      This has been a key factor in some court cases!
    8. 8

      You got a driver's license and automobile registration in the new location

    9. 9

      The Social Rule: You changed membership in churches and clubs

    10. 10

      Generally, facts indicate you're involved in the new community

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