[goheels]

This might be complex -- but here we go:

I am looking at purchasing oceanfront property in FL and I am wondering if I can use FL's no income tax laws to my advantage. I own a home in NC and work in sales for a company based in NC. Here are a few of my questions:

1. Can I choose to list FL as my primary residence if I own property in FL and NC -- I am wondering if I can legally argue that I have moved to Florida and I now travel to NC as my company requires (I would be required to be in NC most of the time). Is there a minimum amount of time that I need to spend in FL to be considered a resident? Do I need to register my car in FL and register to vote, etc. to have FL as my primary residence.

2. If I am able to claim residency in FL , am I correct in assuming I would pay NC taxes when I'm in NC and FL taxes when I'm in FL.

3. I travel all over the country, assuming I am able to get FL residency, could I claim that as a "FL resident" traveling for work. I don't spend more than a week in one State before I'm onto the next, so in years past I only filed NC taxes. If I have the place in FL as a primary residence, could I conceivably include that as FL taxable income instead of NC if I'm quickly moving from State to State selling. This is where it would make a big difference -- I travel 25% of the time, so if I can claim that I'm traveling from FL instead of NC -- that would save me a lot on taxes.

4. If I rent this property out part of the year (again, it's oceanfront), can I still claim it as my primary residence?

5. Are there any deductions I am not thinking of? In other words, can I deduct travel expense to and from FL if I pay out of pocket? Other deductions?

[AtlantaTaxExpert]

1) No, you cannot. If it was that easy, everyone would go down and register in FL to avoid state income taxes. This would especially lucrative for residents of NY and MA. You have to establish residency in FL, which requires you LIVE full-time in Florida for at least six months.

2) Further, NC will tax you on the money you earn in NC regardless of where you live.

3) Sorry, given the fact that you will be spending most of your time in NC, you are in fact a NC resident.

4) No, not unless your rental period is less than two weeks.

5) There are a BUNCH of deductions associated with rental property: Travel costs to and from the property, depreciation, utility costs, insurance, pro-rated share of the tax preparation cost (I HIGHLY recommend that you get professional tax help in preparing the Schedule E for the rental property).