Over the past few months, we’ve been getting questions from clients asking how to change their state residency to that of a lower taxed state, the state of their second home. You Can Change Your Domicile to Avoid State Taxes — But Is It Really Worth Doing So? These changes alone, especially without the corresponding sale of the residence in the departing state, would leave one with a very minimal chance of prevailing the almost inevitable state tax audit. For some, the state income tax savings can be the deciding factor that moves a family to action – especially when relocation already was a consideration. And for the rest, the tax savings alone will not drive the decision.

Source: Forbes October 05, 2020 21:33 UTC