Donald Trump has announced that he intends the change his residence from New York to Florida. Many others wealthy individuals know that this change of domicile results in:
- $0 in Florida State income tax, down from top rates in New York state of 9% and New York City of 4%.
- $0 in Florida Estate tax, down from New York’s estate tax, which can be as high as 16%, and
- Florida provides significant asset protections via its generous homestead exemption laws.
But first Trump must be abandon his New York domicile and he will most likely be subject to a NY tax audit, when he claims loss of domicile on his New York tax returns.
In such an audit, New York will likely look to see if Trump has stopped spending much time in New York, which for the time being it appears that he has, and how much time and connection he has now established in Florida. That includes not just time spent in Florida, but things such as registering to vote in the state, setting up bank accounts, and visiting Florida doctors and other professional people in Florida.
You need to prove by clear and convincing evidence that you not only left first state, New York, but relocated to the new state, Florida.
Read more at: Tax Times blog
