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How Multistate Residents Can Protect Against Double Taxation
ARTICLE | October 29, 2024
Authored by Vasquez + Company
For individuals who own residences in multiple states, the risk of double taxation on income is a complex and often overlooked challenge. The article "Multistate Resident? Watch Out for Double Taxation" delves into the issue of income tax claims from multiple states and offers insights on steps to help reduce tax exposure.
Key Points:
- Establishing Domicile: Avoiding double taxation involves firmly establishing a domicile in one state to show clear intent of permanent residence.
- Domicile vs. Residence: Domicile reflects a “true, fixed, permanent home,” while residence is based on time spent in a state; both can trigger tax obligations.
- Potential Solutions: Certain strategies, such as limiting a permanent abode in non-domiciled states, can reduce the risk of double taxation.
Understanding and managing multistate tax obligations can prevent double taxation.
For more details, read the full article here.
Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
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