ESTABLISHING RESIDENCY

By Albert G. Marquis, Esq.

Many Las Vegans have second homes in California . This creates somewhat of a risk in that California could take the position that you are actually a resident of California, which would mean that you would have to pay California's 10% income tax on all income that you earn regardless of the state of origin.

Here are some of the factors that are generally considered when a court or taxing authority establishes an individual's state of residence:

• Amount of time spent in the state;
• Expressed intention;
• State where the driver's license is issued;
• State where the largest home is located;
• State of voter registration;
• Location of Trust and planning documents;
• Location of cemetery plot;
• State that has issued professional licenses;
• Location of birth, marriage or family;
• Location of tax preparer;
• Location of family doctors; and
• Location of personal banks.

In a recent California case, residency was established by using credit card receipts which were a strong indication of how much time was spent in California .

If an individual wants to avoid becoming a resident of the State of California , the above factors should be tied to the State of Nevada as much as possible. When in California , you might want to utilize cash as opposed to credit cards. For more information, give us a call.