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Georgia


Jul 2, 2006, 6:00 AM

Post #51 of 58 (2623 views)

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Re: [dlyman6500] Apostilles and voter registration

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In most states that have income tax, the income from tangible property (real estate) is taxable, but the income from intangibles (stocks, bank accounts, pension funds) is not, especially where there is no tangible property in the state. One of the factors states normally look to as well is the number of days you spent in the state. Go to your state's website and check under their tax department. There should be information on what constitutes a resident of the state for purposes of income taxation.


Georgia


Jul 2, 2006, 6:01 AM

Post #52 of 58 (2621 views)

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Re: [Georgia] Apostilles and voter registration

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I should have also pointed out that most income taxing states have a provision for "non-resident" income tax: this is usually levied where a person lives out of the state but works in the state or comes into the state for business purposes.


JohnnyBoy

Dec 13, 2006, 3:29 PM

Post #53 of 58 (2565 views)

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Re: [Bubba] Car registration and state income tax liability

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Those of you who still have a connection of any sort to any U.S. state, watch your rear and pay close attention to severing ties to your former state of residence when retiring to Mexico or any other foreign country.


This is precisely the concern I have had all along and SFMACAWS most definitely misunderstood me. I have no desire to renounce my citizenship or to sever my ties with the USA. I will have lived in California for seven of my 62 years by the time I leave here for Mexico, and I earned 90% of my retirement outside of California. My concern arises from what Bubba describes here and in many other of his posts, and from what I have read at other sources, that California is tenacious and relentless in pursuing former residents.

Furthermore, for some of us it is not possible to create legal domicile in another state. Those of you who maintain otherwise are wrong, until you tell me precisely how it can be done without buying or renting property in the new state. A mail forwarding service address does not meet that requirement.

And furthermore, I have been nothing if not diligent in my preparations for bank accounts, credit cards, insurance of all kinds, and all those other things I have been accused of ignoring. The banks and credit unions I deal with will accept and use my mail forwarding address in Las Vegas, NV. So will Social Security and the IRS. But the state of Nevada will not grant me a drivers license based on that address nor will they register my vehicle when all I have is a mail fowarding address in their state but live full-time in Mexico. No state will. And without the registration I cannot get US auto insurance and by that I mean the regular kind we all buy when we live here and have a car registered here, so don't tell me about the places on the border where I can buy it.

I rediscovered this thread when I did a search for "Expired Drivers Licenses." I have not found much yet on that specific topic. There is a lot on expired car license plates, but I have not found anything yet about what happens in Mexico if you get stopped and you have an expired US/State drivers license.

The license plate bracket on the front of my Ford Ranger pickup is gone, broken off, whatever. I know the Mexicans know that California uses two license plates, front and back, although they are not real fussy about it here. So I plan to get some kind of a bracket "welded" onto the front when I get to Mexico and will put the other license plate on the front as soon as I can. It would cost me more than the truck is worth to have it done in California.

Anyway, all that reminds me that I also have no option except to get a Mexican drivers license and to get the truck Mexicanized, if I can (it is a '97...if not I will have to sell it in Tucson and then buy something else in Mexico), because I cannot legally get a drivers license, licenses plates, registration, or insurance anywhere in the USA because I will not have a domicile/state residence anywhere in the USA because I can't afford to buy or rent property there and just leave it to live in Mexico. Many of you have said otherwise, that it is possible, but you were not listening to the details. Someone told me I could simply write to the state of Texas and they would send me a drivers license. Right!!! And don't tell me about South Dakota. They won't do it either, even if some people have managed to get license plates from there. And don't tell me you do it all through your daughter's address or whatever, because that won't work for me.

So finally, let me assure you all that my particular circumstances that make it necessary for me to try to avoid California stealing 6% of my retirement every year because I lived here last and having to do many of the other things you all do back in your home states where you still own property does not mean that I hate the USA or want to be free of it. It just means I have to do things in Mexico.


bournemouth

Dec 13, 2006, 4:21 PM

Post #54 of 58 (2553 views)

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Re: [JohnBleazard] Car registration and state income tax liability

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John - if you are not comfortable arranging your car plates and drivers license in the ways that most of us use, that is your privilege. You will have to find your own solution. Arizona had no problem in letting us go as residents when we were transferred to South America and Arizona continues now to use our old address for voter registration purposes, even though they know we live in Mexico - that is the way the Registrar of Voters handles the situation. Move, albeit temporarily, to another state and make that your new residence and then take it from there. For instance, rent an apartment short term in Nogales, register your vehicle in Arizona, get your insurance from Bob Acosta in Nogales for Mexico, contact a Farmers Agent for US insurance in Nogales, continue to renew your plates on line, your licence will be good until you are 70 so you do not have to return to Nogales to renew until then. Reduce your NOB insurance to the minimum required to maintain your plates and if you have a friendly agent, as we do, he or she will reinstate your full insurance when you cross the border, and take it back down when you leave. Yes, you are paying for plates and insurance NOB, but you have no problems when you want to come back into the US and as you will be in Hermosillo, trips to Tucson will always be on your agenda. The problems for people seem to arise when they let plates and insurance lapse - but that is an individual choice.

This can be worked out if YOU want to work it out - but you don't seem to be prepared to do it. Our agent knows where we live and where our cars are parked - he has no responsibility for us when we are south of the border and is happy to continue to provide us with service and to see us when we return to the area.


Papirex


Dec 13, 2006, 5:18 PM

Post #55 of 58 (2534 views)

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Re: [JohnBleazard] Car registration and state income tax liability

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John, while I understand your concerns about the possibility of taxes due on your pensions by The State of California, I donít think you have as big a problem as you fear that you do. In the early 1970s, California passed a law that any pension earned in California was subject to California taxation, regardless of where the pensioner lived, in or out of the state of California.

The state did take several former federal employees to court that had earned their federal pensions while living and working in that state, but retiring in other states. The State of California won those cases in the 1970s.

I have no knowledge of whether any later court decisions may have nullified, or modified the decision in the case of the retired federal employees. However, I earned one of my pensions while a member of a union in Vallejo, California. When I was preparing to retire a few years ago, I called the administrator of that pension to find out what tax obligations, if any, I had for that pension.

The pension administrator told me that several of our members had retired and moved out of the state. The State of California was not bothering any of them. I had moved out of the state some 30 years before I retired. I have never received any communication from The State of California about any state taxes due on that pension.

You will probably only need to pay California income tax on any pensions if you continue to file California State income taxes every year. If you are no longer a resident of that state, that is not necessary.

For your own peace of mind, you may want to talk to a local attorney that specializes in tax practice.

Bournemouth has given you good advice about registering your car in a different state, if you really feel it is necessary to sever all ties to California. If you still feel that your best course would be to sell your car in The US and buy one here, this link may give you an idea of used car prices in Mexico: http://vehiculos.mercadolibre.com.mx/

Each of us has had our own unique problems to solve when moving to Mexico. Relax; it is doable.

Rex



"The supreme happiness of life is the conviction that we are loved" - Victor Hugo


JohnnyBoy

Dec 13, 2006, 5:56 PM

Post #56 of 58 (2527 views)

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Re: [bournemouth] Car registration and state income tax liability

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I am prepared and I have already considered the temporary residence in another state while I apply for a drivers license, car registration, license plates, and vehicle insurance.

But after I leave that temporary apartment, a year later, four years later, when I apply for renewals of my drivers license and registration, where will the state send my renewed drivers license? Where will they send the little stickers for the license plate that show my registration is current.

I have to admit I am hyper conservative when it comes to breaking the law or bending the rules. Not because I want to be hyper law abiding, but because "shit happens" and it usually happens to me.

I know for a dead certain, bankable fact that insurance companies are not in the business of paying claims and they will use every tiny letter of the fine print in the insurance contract to deny a claim, if they can. And I know this: a car is not insurable if it is not legally registered. The insurance companies will take my money and give me the impression that I am insured, but I know that unless I am LEGALLY registered in the state where I have declared the vehicle is "parked/garaged" at night, that I am not insured. Regardless of what my agent may have told me. I know this for a dead certain fact. I have had the unfortunate experience of this learning this first-hand.

So, yes, I am uncomfortable with that kind of an arrangement.

Let me hasten to add, however, that I am OK with the decisions and conclusions I have come to about these matters. It is just that some people interpret those decisions and conclusions to mean that I am anxious to sever my ties with the USA and to give up my citizenship, my right to vote, whatever crap they wrote. That is what I posted about. I did regurgitate some of my former frustations that I could see no LEGAL way to live in Nevada or Idaho or Arizona, or wherever, even South Dakota, and not actually live there.

And I appreciate subsequent posts and responses to my post about California and its unwillingness to let go of us.

Actually, getting an temporary apartment, and all the rest of what Bournemouth has suggested, for a couple of months, three months, getting a round of drivers licenses, car registration, license plates, and insurance might actually satisfy Sacramento that I am domiciled elsewhere. Not doing that and going directly to Mexico leaves the door open for California to claim that it is my U.S. domicile because it was my last U.S. domicile. It may be worth doing just for that. I have already considered it. It is just that they use the word "INTENT" all over the place in the law. What was my intent? Well, I know, and you know, and they know, that my intent was NOT to take up residence in that new state. And I don't have the bucks to fight it in court.

Drama, I know. But that is what "shit happens" means, when it happens.


(This post was edited by JohnBleazard on Dec 13, 2006, 6:03 PM)


JohnnyBoy

Dec 13, 2006, 6:18 PM

Post #57 of 58 (2523 views)

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Re: [bournemouth] Car registration and state income tax liability

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Bournemouth,

I have posted again, openly, as you did, because I think I need to express my opinion about those matters.

I continue to appreciate very much your personal contribution and answers to my questions. I do take them into consideration.

In this case, and as you have stated, I am not comfortable with those particular solutions, simply because it would worry me to death that I was not doing things legally. Not because I have any problem about the legaility, rather the concern that I would get caught. I always get caught.

I have found my own solutions. I am happy with them. I am comfortable with them. I plan to do things mostly in Mexico, all the registering, licensing, insuring. And it all came from suggstions from contributors in MexConnect like you.

But I do resent the person who claimed that my desire to avoid the California taxman, and my decisions to do things Mexican, meant that I am a disgruntled US citizen anxious to sever my relations with the USA and that I have not made appropriate arrangements for things like bank accounts and credit cards, for which I would need to be able to prove US domicile/residency.

I posted at length about my experience with Citibank. I resolved that matter.

And, finally, if my plans do not work, or I have too much trouble doing it all a la Mexicana, I still have the option of using my sister's address in Idaho and doing it all that way. It would not be legal, but it would be closer.

Thanks again to you for your help and support.

jb


JohnnyBoy

Dec 13, 2006, 6:38 PM

Post #58 of 58 (2516 views)

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Re: [RexC] Car registration and state income tax liability

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I want to be consoled by your assurances that the California tax man probably won't pursue me, however I have real life experiences in closely related matters that will not allow me to lower my guard:

1. I assume California state tax law is not radically different from that of the IRS in the sense that it does always and according to law consider anyone being audited to be "guilty" until he/she can prove him/herself not guilty. I know this for a fact. From personal experience.

2. As the ex-spouse of a career IRS revenue officer, I also know for a fact that tax collection entities prefer "targets" that do not have the means to defend themselves in court. The prevailing philosophy is that it is easier and cheaper to collect $1000 in taxes and penalties from 1,000,000 taxpayers than to collect $1,000,000 (billion) dollars from one taxpayer. Anyone with a billion dollar tax liability can litigate the situation until hell freezes over while Joe Sixpack will just cough up the $1000 and run away with his tail between his legs, considering himself lucky.

I could not afford to fight the state of California.

Better to find the RIGHT and LEGAL way to end my relationship with the state (which does not mean I am anti-American.)

jb


(This post was edited by JohnBleazard on Dec 13, 2006, 6:49 PM)
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