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Residency Audit

Marine Insurance/Health Insurance/Banking/Bill Paying/Taxes

Residency Audit

by u02it27 » Wed Apr 04, 2018 10:48 am

Hi,
My wife and i were able to live aboard our sailboat for about 2 years in 2014 and 2015.
We had to return to Mn to take care of my elderly parents.
We contacted St. Brendan's Isle and i feel established our intent by getting an address with them. We were in the state of Mn less than 183 days. We sold our house our cars and our possessions.
The State of Mn has determined that we did not establish a domicile in the State of FL.
We followed all the written guidelines that the state has published but because we did not have a piece of property with dirt under it they ruled against us.
Does anyone know of a court case with these circumstances or of an audit that could be shared?
I have searched the internet and have found no court cases pertaining to residency audits.
Any help or information would be greatly appreciated.
Thanks
Rick and Debbi Porter
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Re: Residency Audit

by u02it27 » Thu Apr 26, 2018 8:20 am

Hi Again,
Here are a few lessons learned.
It seems you can't just be out of the state of your previous residency. you have to be in the state where you want to declare residency more days than the previous state.
Cancel your drivers license and voter registration in your previous state.
Review court cases or contact an accountant that is familiar with your states tax laws.
Try not to take a large disbursement from your 401k when leaving as this will draw attention from the state.
If possible register your vessel as your domicile in the new state.
Try to review your plan with a state auditor. They might decline. In Minnesota they will not give advise on how to change your residency.
They say knowledge is power and you pay for what you learn. I only hope we are now payed in full to the state of Minnesota.
Dreams come hard and die easy. Don't let the government take your dreams.
Fair winds
Rick and Debbi Porter
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Vessel Name: Amante
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Re: Residency Audit

by hellosailor » Wed Jun 06, 2018 2:45 pm

You lived aboard your sailboat--but where?
And what was your residency and domicile (two different things under state laws as well as federal) during that time?
Where was your registered voting place? Did you cast a vote from there? Where was the boat registered? Where was your driver's license?
All of those things will be considered and you might want a tax attorney to go through them and represent you, or at least send a letter with you to the audit. And you'll need to actually view the MN and FL laws on the subject. In some states, if you had any ties to the state (owned property there?) your residency for taxes will be considered xx many months of the year, however long you were there. In others, yes, 181 or 183 days may trigger the tax status.
The devil is in the details and all of these things need to be considered, which is where the tax attorney should be of use. Even at $150 an hour, a one or two hour consultation should give you some firm ground to stand on. Or, you may simply be liable for taxes.
The SBI kludge is a very nice thing, much like the ND "declaration of domicile", but states are shutting down loopholes like that. Ask the attroney!
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Re: Residency Audit

by u02it27 » Wed Jun 20, 2018 8:02 am

We traveled from the Great Lakes to Florida and then over to the Bahamas.
We used St Brendan's Isle and got an address there.
Registered to vote but did not vote at that time.
All Ids, documents, and registrations were changed to the Green Cove Springs address.
The boat was registered in Fl.
Drivers License was in Fl.
Our blog showed that we were traveling and not in the state of Fl.
Mn court case not there documentation states that you just can't be out of the state of Mn. but have to be in the state that you are establishing residency.
We settled with the State of Mn. We agreed to pay the tax but not all the penalties and interest.
Lessons learned are sometimes expensive.
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u02it27
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Vessel Name: Amante
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