As the deadline approaches for state and federal income taxes (April 18th this year), some of you may be thinking, "how do I join other wealthy Rhode Islanders and get me some of that Florida no-income-tax sunshine?" Why just sit and envy your neighbors with their sharp looking Florida license plates on their Cadillacs, Acuras or Hyundais?
Becoming a
Florida resident is simple and easy. Let's take a typical Florida locale like, choosing at random,
Martin County, FL. First, you need an address. You can easily pick up a cute little condo, especially now that Florida real estate prices have tanked more than most parts of the country. For example, a 1300 square foot condo on the water would have cost you $105,000 two years ago. Today, it's assessed at only $75,000.
And with a little looking, you could probably find an even cheaper place to hang your tax return.
RealtyTrac lists 143 bank-owned properties just in Stuart, FL alone. Twelve of them are listed for less than $50,000, including one gem on Ocean Boulevard that can be yours for
just $28,720! And you could do even better - there are 32 Stuart properties coming up for Sheriff's Sale.
The great thing about Florida is that
you don't even have to live there to be a resident. There is no requirement on how many days you spend in your new Florida hacienda. You could show up once a year just to check to see if the termites ate your place and that's fine with Florida.
You automatically become a Florida resident by (a) getting a Florida job; (b) sending your kids to a Florida school; or (c) registering to vote. You can file a simple
Declaration of Domicile form, showing a phone or utility bill and a picture ID to establish that you have an honest to God Florida residence. You will need to file your federal income taxes from your Florida address.
So, it's pretty simple to become a Floridian. But - here's the key question - what if you want the best of both worlds? What if you want to live in Rhode Island but be taxed as a Floridian?
Remember this number: 183. Let's say somebody dropped a dime on you, under
RI Division of Taxation regulations, you can be required to present proof that you have lived outside of Rhode Island for 183 day or more. On the other hand, if you have lived in Rhode Island for 183 days or more, you are a Rhode Islander. Capice?
Author: Will Collette