Nevada Residency Provides Relief for Taxpayers

Individuals and businesses are becoming more and more motivated to relocate to Nevada due to the fact that there is no state imposed income tax. In order to take advantage of the income tax savings, several factors come into play. Evaluate your personal and corporate tax climate and use the following information to evaluate your potential for the Nevada tax savings.

In order to take advantage of Nevada’s “tax hospitality” a taxpayer must make Nevada its principal place of residence, i.e. your primary home. Residency is the single most important factor in gaining Nevada’s tax advantages.

A “close connection test” is implemented and must be passed in order for a taxpayer to establish state residency. The “close connection test” identifies if Nevada is the state in which a taxpayer has the closest ties during a taxable year. Various factors include: physical address, sources of income, voter registration, home ownership, the location of you closest social and business contacts, and more. Individuals who are considered “domiciled” in Nevada generally escape taxation. A corporation organized and domiciled in Nevada can also significantly reduce its state tax burden by shifting its corporate level of activity to the state of Nevada.

Owning real estate in the state of Nevada is a key factor when considering such tax advantages. For more information about the current Nevada real estate market contact Sierra Sotheby’s International Realty at 888.444.1505. To learn more about the potential tax advantages of Nevada residency for yourself or your business visit http://tax.state.nv.us/. Contact an experienced CPA or financial advisor to plan and implement a successful change in residency. Information gathered from Taking Advantage of Nevada’s Hospitable Income Tax Climate.