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We are going to be doing a short-term (less than a year) relocation to a new state in a few weeks. Our current home (in State 1) is on the market but has not sold. We will be renting in State 2 and will be spending most of our time there. We will be going back and forth to State 1 probably 2-3 times a month. The vast majority of our belongings will stay in the house in State 1.
I have a few questions regarding residency. Assuming our home in State 1 does not sell any time soon:
1) Since we own the property in State 1 and will only be renting in State 2, will the home in State 1 still be considered our Primary Residence? Does the amount of actual time spent in each state determine which is Primary?
2) Where do we need to have our cars registered? Assuming the home in State 1 does not sell any time soon, do we still keep our cars registered there, even though they will be garaged in State 2?
3) Same question regarding our licenses. Do we need to switch licenses to State 2 or can we keep them in State 1?
4) Utilities for the rental will be in our names. Is that a factor in determining which is our Primary Residence?
5) Same question for mail. Do we put in a Forwarding Address or a Change of Address order with he Post Office? Is there a limit to how many months either is good for? If we put a Change of Address in at the Post Office, does that mean we've switched our Primary Residence to State 2? Would it be better to get a P.O. Box in State 2 rather than having home delivery?
6) We don't want mail accumulating in the mailbox in State 1, even though we anticipate checking it 2-3 times a month. Should we get a P.O. Box in State 1?
Sorry for so many questions! In our many, many moves over the past 30 years, this is the first time we've been in a 2-home scenario for more than 3 months, so it's all new territory . Thanks for any advice you can provide!
Wow very good questions! The one I can answer is about forwarding mail having worked for them many years. You can put in a temp forward and then if you go back you can change it back. The post office has a form that changes a forward to another address or cancels it. A forward is good for one yr.
I am almost certain that yr primary residence is still in the 1st state. I am thinking about travel nurses that may be on assignment for six mos somewhere. Let's say that TN goes from MS to GA via their own vehicle. I am sure they don't register with the DMV in that new state. So you should be okay.
Now if I remember correctly when it comes to filing state taxes you would have to file for both states. I know I did when I moved from GA back to CA in middle of the yr.
I would check with state 2 local police and DMV to get clairty.
Thanks for the info, Caligurl! It's especially good to know that a forward lasts one year -- I was afraid it was only 60 days.
Since I posted the OP, I've been trying to Yahoo/Google some answers but haven't had much luck. Most of the info seems to be geared toward people who want to be a landlord ("renting out my second home") or purchasing a second home.
One thing I came across made me think of yet another question: how about voting? Big election coming up (as if you didn't know ). I suppose we should vote absentee ballots for State 1 since by election day we'll have only been in State 2 for about 45 days.
This is far more complicated than I originally thought!
One thing that you didn't ask about but could be a problem is state income tax (unless neither state involved has an income tax). Domicile is a complicated issue. Based on your post, it appears that your domicile would remain your current state, but you could end up being a statutory resident in the new state.
In your shoes, I would retain State 1 as my state of primary residence, driver license, car tabs, voter registration, library card, etc. etc. Vote in State 1 by mail. You are only a temporary, "transient" resident elsewhere. IF your State 1 house were to sell AND CLOSE before January 1, 2009, adopt the address in State 1 of a relative or close friend. (Where you have the P.O. forward mail to is irrelevant in terms of legal residency.) Speak to the Universe to keep your house until Jan. 1.
STATE INCOME TAXES will matter. You have earned income in State 1. You will earn income in State 2. Assuming BOTH states have individual income taxes, you will have paid in to the system in both states in the correct manners. BUT you may be due a refund, or you may owe taxes, in one or both states -- be certain that you engage a CPA in February to make certain you are covered in both states. For example, if State 1 has NO individual income tax, but State 2 does, you will need the CPA's expertise to sort that out.
Excellent! Thank you, Jane, Allforcats and Crazyma (and thank you again, Caligurl)! We had already considered the income taxe issues (sadly for us, both states are big bite states), but hadn't thought much about the insurance question. So many things to consider.
Of course, if we get a reasonable offer (oh wouldn't that be nice!), well, that changes the whole equation, but I'm hoping that would bring good problems to solve .
Now, if you rent out House #1, then would #2 be your primary? And then should you change all your registrations, licenses, insurance...? We are moving to NV, which has no st. income tax from MI which does. I am sure I will have to get a CPA to help with taxes. I have always done my own, but not with all this.
I just checked with the DMV in State 2. Since we are keeping our home in State 1 (unless/until it sells, of course) and because we do not intend for State 2 to be our permanent residence, the DMV says we can keep our State 1 licenses and car registrations. In our circumstances, we will be considered temporary residents, like college students. Just like Allforcats said above .
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. Thanks for any advice you can provide!
). I suppose we should vote absentee ballots for State 1 since by election day we'll have only been in State 2 for about 45 days.
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