Claiming residency on a 2nd home

[Corben Briggs]

Hey guys,

I'm currently living in MA and investing in some STR's out of state. Had my eyes set on a NH for a little while now and wanted to see if anyone had any advice/insight on claiming a 2nd home / STR property in NH as your primary residence in order to take advantage of NH not having state income tax. The savings in state tax alone would be significant and from what I can see wouldnt be too difficult to "prove" I live there for more than half the year considering its only a couple hours away.

Is anyone familiar with doing this or have any advice on how it could work?

anything helps!

Cheers!

[Zachary Jensen]

Hey Corben! I would need to know your situation more but you could likely get away with it. Keep in mind if you do get audited, your receipts from grocery stores, local entertainment, etc could substantiate your claim. While if you claim residency and then are actually buying things all over the area you really live, it looks more suspicious  

[Corben Briggs]

Yes, I wouldnt be purchasing anything all over the area back in MA. I would definitely plan on using credit cards for any purchases when I would go to keep a paper trail. Curious if the state of NH has any regulations on this type of residency transfer like if Im required to register my vehicle there and get a new drivers license or any other information that needs to be updated with my new "residency".

[Bill Brandt]

If you move there, get owners home insurance, utilities in your name, not a landlord policy, move all your billing, medical, voting, car registration, etc etc there you should be able to prove you live there 6 months. As long as you don’t rent it out more than 182 days per year as that would be an obvious gotcha. Then as long as you don’t have a job back in MA (or you’d be taxed there anyway) and your properties aren’t in states with income tax (as they would tax you anyway) as long. You’re there at least 183 days you should be good. 

Just don’t fake it, it’s way too obvious, super easy to get caught, and they can catch you in 2-5-10 years, and you’re guilty for all those years. You never “got away with it” until you die.  probably a felony, definitely penalties because you’ll be lying to the MA and the NH state government. (People often forget they’re getting a property tax discount for their primary so they forget that crime of telling the state it’s their primary home when it’s not. Usually comes up the other way when they leave the state and turn their old home in to a rental and keep it registered as owner occupant.)

It’s defiantly the reason I will never spend 183 days in MN and NV remains my home base. MN would even want income tax on my NV rental income, no thanks. 

[Matthew Paul]

Ask Marilyn Mosby   ( Baltimore Attorney )   how it works for her 

[Russell Brazil]

Quote from @Corben Briggs:

Hey guys,

I'm currently living in MA and investing in some STR's out of state. Had my eyes set on a NH for a little while now and wanted to see if anyone had any advice/insight on claiming a 2nd home / STR property in NH as your primary residence in order to take advantage of NH not having state income tax. The savings in state tax alone would be significant and from what I can see wouldnt be too difficult to "prove" I live there for more than half the year considering its only a couple hours away.

Is anyone familiar with doing this or have any advice on how it could work?

anything helps!

Cheers!

 Youll need to sleep there 6 months plus 1 day. Change your drivers license and car registration. 

And if you dont actually do that, as @Matthew Paul said, the Baltimore States Attorney was just arrested and convicted of mortgage fraud for not meeting occupancy requirements of a loan for a property on a short term rental.

[Jack Seiden]

Quote from @Corben Briggs:

Hey guys,

I'm currently living in MA and investing in some STR's out of state. Had my eyes set on a NH for a little while now and wanted to see if anyone had any advice/insight on claiming a 2nd home / STR property in NH as your primary residence in order to take advantage of NH not having state income tax. The savings in state tax alone would be significant and from what I can see wouldnt be too difficult to "prove" I live there for more than half the year considering its only a couple hours away.

Is anyone familiar with doing this or have any advice on how it could work?

anything helps!

Cheers!

 Most bank robbers get away with it the 1st time, yet no one comes on bigger pockets & ask’s if it’s a good strategy, even thought it’s quite profitable and you have decent odds of getting away with it, it’s still illegal, immoral and if you do get caught you’d go to jail. Does that answer your question?

[Bruce D. Kowal]

Try this:  Monaeo Personal Software for Tax Residence Audits