State Domicile and Residency

In this episode of the SALT Shaker Podcast, host Chris Lee discusses a California income tax matter concerning the sourcing of an individual’s income, a Wisconsin corporate income tax matter involving the dividends received deduction, and two Idaho individual income tax decisions addressing domicile.

Questions or comments? Email SALTonline@eversheds-sutherland.com.

 

It goes without saying that an individual is free to move about the country and to change their state of residency/domicile for state income tax purposes. However, that change is potentially complex under the law, especially when an individual who is a longtime resident/domiciliary of California plans to become a nonresident.

In this article for

On March 6, a bill to tax capital gains passed the Washington state senate. S.B. 5096, introduced on Jan. 6 by state senators Hunt Robinson and Wilson Nguyen, would impose an excise tax equal to seven percent of a Washington resident’s capital gains, starting January 1, 2022.

Only individuals are subject to the tax, and

The New York Tax Appeals Tribunal recently held that a vacation home constitutes a “permanent place of abode” to make taxpayers statutory residents for New York income tax purposes.

The taxpayers, a married couple, were domiciled in New Jersey. The husband was a hedge fund manager who primarily worked out of his New York City

On August 13, 2020, the Utah Supreme Court agreed to hear a married couple’s direct appeal from a State Tax Commission decision holding that the couple was domiciled in Utah during the 2012 tax year under Utah’s “presumptive domicile” statute. Specifically, the case involves Utah Code Ann. § 59-10-136(2), which provides a rebuttable presumption

Calling all trivia fans! Don’t miss out on a chance to show off your SALT knowledge!

We will award prizes for the smartest (and fastest) participants.

This week’s question: Which state’s tax tribunal recently considered a domicile and residency case involving an eye doctor who moved to the Middle East after a divorce?

E-mail your

On December 2, 2020, a three-judge panel of California’s Office of Tax Appeals (“OTA”) issued a non-precedential decision ruling that a husband and wife remained domiciled in and residents of California for the 2013 tax year despite the husband leaving the state for an alleged “permanent” job in Alaska that lasted from April to July

On December 21, 2020, a three-judge panel of California’s Office of Tax Appeals (“OTA”) ruled in a non-precedential opinion that an ophthalmologist successfully abandoned his California domicile and became a California nonresident from May 25, 2013 through December 31, 2013 after moving to Saudi Arabia. For a brief overview of the various legal concepts involved

How do you change your state of domicile? What makes you a resident of a particular state? While these questions appear simple on the surface, the answers are complex and can vary depending on the state. That’s why Eversheds Sutherland’s SALT team has honed our knowledge and expertise on these issues to provide answers. Our