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Establishing Nevada Residency

 

Nevada has some of the most favorable asset protection and trust laws in the country. It is ranked #1 for Domestic Asset Protection Trusts. Nevada also has no state income tax, which makes it a very favorable place to live. Establishing Nevada residency can provide significant tax benefits, but you need to make sure you do it right when selecting Nevada as your domicile state.

 

Checklist for Change of Residency

The question of whether or not you have ceased to be a resident of your former state and have changed residency is "fact-driven" and there is no absolute assurance of how your former state will treat your "move." The longer you can show a lack of strong association with your former state, the more likely that the state will fail in any attempt to treat you as a resident. However, among the facts you should create are (and the more facts on your side, the better your case) the following (check off each item as you complete it):

Be outside of your former states more than 183 days in a calendar year (i.e., over half the year)

    1. Keep a calendar and try and attach one receipt per day showing that you were outside the state for that day as evidence of being outside of the state for 183 days.
    2. You do not have to be in your new state for 183 days — just outside the former state for 183 days.

Buy (preferably) or rent a local residence (and furnish it with furniture — empty residences do not work well)

Declare a Homestead Exemption in your new state and terminate your former Homestead Exemption

If possible, sell or transfer any real estate in your former state to family or other entities (e.g., an LLP)

If permitted by state law in your new state (e.g., Florida), go to the local Court and make a "Declaration of Domicile" or similar statement in the Court records of the county of your new residency

If possible, have no salary or other earned income in your former state

Change driver's license to your new state and surrender your old license

Change all bank accounts to your new state and do not retain any bank accounts in the former state

Move your only safety deposit box to your new state

Change vehicle registration(s) and insurance to your new state

Obtain a library card in your new state

Change social clubs and service clubs to your new state (e.g., Rotary, Kiwanis, golf club); serve on Local Charitable Boards

Change voter registration to your new state and terminate your former voter registration

Do wills, medical directives, and powers of attorney under your new state's laws

Engage a local doctor, dentist, and/or chiropractor; have medical records moved to your local doctor

Move your religious affiliation and membership to a local group in your new state; make local contributions

Have your federal tax returns go to your new state address — never have them go to your former address

Have credit cards, brokerage statements and other financial related mail go to your new state address

Have any minor children attend schools in your new state

If you have owned an interest in any S corporations, Partnerships, or LLCs that allocates you income that is taxable in the former state, determine if the former state's tax laws permit the entity to pay local-based taxes for all non-residents and eliminate the requirement that the owners file a local non-resident return

Focus your social, economic, and other activities in the new state of residency

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