The Virginia Department of Taxation issued a private letter ruling on May 25, 2021, determining that a man who relocated out of Virginia as a result of a new position with his employer, but retained his Virginia driver’s license and motor vehicle registration in order to facilitate a potential return to the state in the
The couple that pays together, stays together: wife’s federal nonresident alien status does not affect Virginia income tax
The Virginia Department of Taxation recently released Letter Ruling 21-59 (dated May 18, 2021), determining that Virginia-sourced wage income earned by a wife under federal nonresident alien status was taxable to a couple with part-time Virginia residency.
The couple began residing in Virginia in June 2017 and spent 199 days in the state that year.
C’est la vie: Nonresident must pay California tax on community income earned by resident spouse
On May 18, the California Office of Tax Appeals (“OTA”) issued a pending precedential decision holding that community income derived from nonqualified stock options (“NQSOs”) and restricted stock units (“RSUs”) granted to a resident in exchange for services performed exclusively in California and vested while a California resident is taxable California source income to a
Growing roots in the Palmetto State: South Carolina Department of Revenue issues guidance on domicile and residency
South Carolina’s Department of Revenue (DOR) recently published the inaugural edition of its Guide to Determining a Taxpayer’s Domicile for Income Tax Purposes (Guide). The publication issued by the DOR’s Policy Division provides a general overview of South Carolina’s domicile rules for income tax purposes. The intent of the guide is to assist taxpayers and
Know when to fold ‘em – OTA rules taxpayers residents of California despite renting apartment in Nevada
A three-judge panel of California’s Office of Tax Appeals (“OTA”) issued a precedential decision ruling that taxpayers remained domiciled in and residents of California at the time they sold their aviation business despite renting an apartment in Nevada prior to purchasing a home in the same area.
At the time of the sale, the taxpayers
Bye-Bye Buckeye (State)? Ohio Department of Taxation proposes amendments to residency rules
The Ohio Department of Taxation recently proposed amendments to its rule governing the determination of resident status for personal income tax purposes. The current rule identifies factors considered in making a determination of an individual’s domicile (e.g., the number of contact periods in Ohio during a taxable year and the individual’s activities in tax years
Actions speak louder than words when determining New York domicile
A New York Administrative Law Judge recently determined that a married couple who purchased a home in Florida in 2013 with the intention of retiring in the state, but retained ties to New York, could not prove that they abandoned their New York domicile in 2014. In arriving at her conclusion the ALJ focused on
Quick Update: California, Wisconsin and Idaho
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.
Successfully Changing California Residency For Tax Purposes
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
Capital gains tax bill passes Washington state senate
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