There are many factors in determining whether you are a California resident. However, if you’re looking to move out of the state, there are a few things to keep in mind.
Do’s:
• Either sell your California residence or make sure you can support the reason why you still own it for investment or rental purposes
• Set up residency in your new home state and make sure to spend some time there
• Cut ties with any employment related to California
• Make sure to begin either new employment or a business in your new state
• Get a driver’s license and register your vehicle in your new state
Don’ts:
• Hold onto your California home and use it for personal use
• Vote in elections
• Have your mail sent to a California address
• Use medical or other professionals that require a physical presence
• Hold onto your California driver’s license and keeping any vehicles registered in the state
As stated above, there are many factors in determining if you are or aren’t a resident of California. The more Do’s you can achieve while minimizing the Don’ts, the better chance you will have if ever audited.
We serve clients in the Sports & Entertainment industry. Our knowledgeable staff can navigate loan-out corporations, Screen Actor Guild (SAG), and pension issues. We have experience handling state withholding and corporate registrations for California corporations doing business in other states. From basic tax preparation and accounting services to full-service business management, our firm has all of the services and experience needed to help artists achieve their financial and artistic independence.
If you have any questions about the Do’s and Don’ts of California non-residency, KROST is here to answer your questions. Contact us today.
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About the Author
Brad Pauley, CPA, Principal
Tax, Sports & Entertainment
Brad Pauley is a Tax Principal at KROST. Brad has nearly 30 years of experience providing tax advice, projection, and compliance services to clients in a variety of different businesses and industries. His areas of focus include high net worth individuals and their closely held businesses, including athletes, entertainers, service professionals, and owners/operators of real estate including like-kind exchanges. » Full Bio