Page 2 of 3 FirstFirst 123 LastLast
Results 26 to 50 of 75

Thread: Refuge

  1. #26
    Join Date
    Aug 2008
    Posts
    256

    Re: Refuge

    Quote Originally Posted by Scott View Post
    Quote Originally Posted by John Sullivan View Post
    Quote Originally Posted by Scott View Post
    Hey, You guys better watch out with the sheep remarks or I'm gonna report you......

    PERVES!!!

    CHILDREN ARE READING THIS, YA KNOW!!!!
    I was just gonna say the last time the subject of sheep came up...........


    Yeah, well I'm stepping up to maintain an atmosphere of decorum and civility.
    Why, you've never been anything but a pillar of society respectful and kind at all times.

    I want to be just like you when I grow up.

  2. #27
    Join Date
    Aug 2008
    Posts
    256

    Re: Refuge

    BTW the house sounds like a good idea to me. Which means you should probably look it over very carefully before committing.

    I am notorious for my poor judgment.

  3. #28
    Join Date
    Mar 2007
    Posts
    1,213

    Re: Refuge

    Quote Originally Posted by John Sullivan View Post
    Quote Originally Posted by Scott View Post
    Quote Originally Posted by John Sullivan View Post

    I was just gonna say the last time the subject of sheep came up...........


    Yeah, well I'm stepping up to maintain an atmosphere of decorum and civility.
    Why, you've never been anything but a pillar of society respectful and kind at all times.

    I want to be just like you when I grow up.
    Thanks, John, that means a lot to me

    I'm really glad I could be a positive influance in your life.

  4. #29
    Join Date
    Oct 2005
    Location
    At Home
    Posts
    12,071

    Re: Refuge

    Quote Originally Posted by Scott View Post
    Quote Originally Posted by John Sullivan View Post
    Quote Originally Posted by Scott View Post
    Hey, You guys better watch out with the sheep remarks or I'm gonna report you......

    PERVES!!!

    CHILDREN ARE READING THIS, YA KNOW!!!!
    I was just gonna say the last time the subject of sheep came up...........


    Yeah, well I'm stepping up to maintain an atmosphere of decorum and civility.
    About time!!!!
    The brain is a wonderful organ; it starts working the moment you get up in the morning, and does not stop until you get to the office. (Robert Frost)

  5. #30
    Join Date
    Oct 2005
    Location
    At Home
    Posts
    12,071

    Re: Refuge

    Back on topic. I do like your refuge. I am a bit jealous! I hope it works out for you.
    The brain is a wonderful organ; it starts working the moment you get up in the morning, and does not stop until you get to the office. (Robert Frost)

  6. #31
    Join Date
    Mar 2007
    Posts
    1,213

    Re: Refuge

    OK, I may have found a Fly in The Ointment.

    I know how to figure it out, but just thought I'd throw the problem out there because maybe one of you geniuses already know the answer:

    If I become a resident of Wyoming because I own a home there that's my primary residence, then will I still be able to deduct all the mortgage interest on my home in Colorado?

    The mortgage interest on the CO home is considerable....let's say $15,000/yr.

    at a 33% Federal Tax rate, this would add $5,000.00 to my Federal Income Tax if I'm not able to deduct Mortgage Interest on the CO house. The whole deal would be a financial wash, since I'm only saving about $5,000.00 in CO state tax by having my residence in WY.

    The Mortgage interest on a WY home would be negligable (I estimate $1,500.00 max)
    Last edited by Scott; 08-23-2008 at 12:36 PM.

  7. #32
    Join Date
    Oct 2005
    Location
    At Home
    Posts
    12,071

    Re: Refuge

    I wish I could help you with this one but I am a complete ignoramus when it comes to tax stuff. I hope it works for you so you can live in WY.
    The brain is a wonderful organ; it starts working the moment you get up in the morning, and does not stop until you get to the office. (Robert Frost)

  8. #33
    Join Date
    Mar 2007
    Posts
    1,213

    Re: Refuge

    Quote Originally Posted by TKDLady View Post
    I wish I could help you with this one but I am a complete ignoramus when it comes to tax stuff. I hope it works for you so you can live in WY.
    Well, if no one can just tell me, I can always plug a hypothetical into Turbotax.

  9. #34
    Join Date
    Oct 2005
    Location
    At Home
    Posts
    12,071

    Re: Refuge

    Patrick appears to have a background in accounting so maybe if he sees this post or if you PM him you might get a better answer than TurboTax might give. That was going to be my other option, to tell you to get a copy and see what it says. That is how I would have done it. Good luck.
    The brain is a wonderful organ; it starts working the moment you get up in the morning, and does not stop until you get to the office. (Robert Frost)

  10. #35
    Join Date
    Aug 2008
    Location
    Peoples Republic of Taxachusetts
    Posts
    123

    Re: Refuge

    Quote Originally Posted by TKDLady View Post
    Patrick appears to have a background in accounting so maybe if he sees this post or if you PM him you might get a better answer than TurboTax might give.
    Turbotax is not a bad little piece of software. Just annoying slow as hell and way too many input screens.

    Anyway, here the stuff that occurred to me, in no particular order (most of it is only tangentially tax related):
    1. Is Scott married? Is the spouse going to remain where she is now (Colorado, I think?) or also spend most of her time in Wyoming? The problem with this is that if she's going to be spending 100% of her time in a state other than Wyoming, she can't really call herself a Wyoming resident. Meaning she's committing fraud when she signs a tax return calling herself a resident of a state where she,well, ain't residing (You can get away with this if you're Dick Cheney and want to be Vice-President. Pretty sure Mrs. Scott wouldn't get cut the same slack)
    2. Where does Scott do his business? Remember, simply because you're not a resident of a state doesn't mean you don't pay taxes there for the time you spend working there. So, if Scott works in Colorado and makes money there, he's supposed to file a nonresident return in Colorado, and presumably pay at least something in taxes there. See here

      I did a couple of tax returns for an announcer for a sports team. LOL, we did a return for 21 states. Not all that hard...but his W-2 looked like War & Peace. We candidly blew off his Canadian income. They're not all that bright up there, anyway.
    3. How does Scott do his business? -Part I-
      Is he an employee? As an employee, he gets a W-2. Meaning he's going to have to make sure his employer is willing to play along on their end, hopefully by spiking out the wages earned in each state in Box 16 of the form, or at any rate by showing the wages earned in the state(s) with an income tax.
    4. How does Scott do his business? -Part II-
      Is he an indpendent contractor? As an Indepdent Contractor he'll get (a) 1099-MISC form(s) that also list the state(s) where he earns his dough. Similar to an employee, you need to make the payer aware of how much to show for each state.
    5. How does Scott do his business? -Part III-
      Does Scott use a vehicle for limitation of liability? (LLC, corporation)? This could actually be a nightmare, since what should happen is a dissolution in one state and reformation in another. Probably a consult a lawyer situation, but I'll babble on in another post if there's a need. For now, I'll pass.
    6. Be sure to register to vote where the new home is, switch all your vehicle plates, switch the address on your checking account, etc. Not strictly necessary, but if a question comes up this will help prove where your new home is
    7. Does Scott have a mortgage on his potential "old" home? The reason I ask this is that there is probably some sort of condition that the mortgage goes into technical default should that home cease being his primary residence. Most banks would never, ever, ever foreclose over this, but you should at least be aware that they could if they wanted to.
    8. The tax stuff is essentially correct. Scott would get greeked with a 10% surtax plus be taxed at "ordinary income tax rates" plus presumably also get taxed in the old state, since the withdrawal would have to occur before the closing. (and will be reported that way on the 1099-MISC. Plus there may be mandatory withholding of some sort straight off the top, though I'm not 100% sure on that.)
    9. Mortgage interest would be deductible, even if the old home has a mortgage. You can take mortgage interest on a primary home plus one other. But note that this does max at two homes. Can't do three, unlike property taxes where there's no limit.
    10. Obviously the "new" home could not ever be rented to anyone.

    I think that does it for the moment. Basically all off the top of my head, and worth ever penny paid for it.
    Last edited by patrick; 08-25-2008 at 07:47 PM.

  11. #36
    Join Date
    Aug 2008
    Location
    Peoples Republic of Taxachusetts
    Posts
    123

    Re: Refuge

    Quote Originally Posted by Scott View Post
    OK, I may have found a Fly in The Ointment.

    I know how to figure it out, but just thought I'd throw the problem out there because maybe one of you geniuses already know the answer:

    If I become a resident of Wyoming because I own a home there that's my primary residence, then will I still be able to deduct all the mortgage interest on my home in Colorado?
    Yes. Just don't buy any more residences.


    Publication 936 (2007), Home Mortgage Interest Deduction

    Qualified Home

    For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.

    The interest you pay on a mortgage on a home other than your main or second home may be deductible if the proceeds of the loan were used for business, investment, or other deductible purposes. Otherwise, it is considered personal interest and is not deductible.

    Main home. You can have only one main home at any one time. This is the home where you ordinarily live most of the time.

    Second home. A second home is a home that you choose to treat as your second home.

  12. #37
    Join Date
    Mar 2007
    Posts
    1,213

    Re: Refuge

    Quote Originally Posted by patrick View Post
    Quote Originally Posted by Scott View Post
    OK, I may have found a Fly in The Ointment.

    I know how to figure it out, but just thought I'd throw the problem out there because maybe one of you geniuses already know the answer:

    If I become a resident of Wyoming because I own a home there that's my primary residence, then will I still be able to deduct all the mortgage interest on my home in Colorado?
    Yes. Just don't buy any more residences.


    Publication 936 (2007), Home Mortgage Interest Deduction

    Qualified Home

    For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.

    The interest you pay on a mortgage on a home other than your main or second home may be deductible if the proceeds of the loan were used for business, investment, or other deductible purposes. Otherwise, it is considered personal interest and is not deductible.

    Main home. You can have only one main home at any one time. This is the home where you ordinarily live most of the time.

    Second home. A second home is a home that you choose to treat as your second home.
    "OR?"


    OK, so I could consider my Colorado home my second home, and use the mortgage interest deduction for that house on my Federal Income Tax, but I couldn't use the mortgage interest deduction on my Main home (in WY) AND Second Home?

  13. #38
    Join Date
    Mar 2007
    Posts
    1,213

    Re: Refuge

    1. I have no intention of my wife living in Wyoming. We'll have to file separate returns.

    2. Currently I travel to Wyoming about 100 days a year to work. Wyoming residency requires I be there 186 days a year. I will happily spend the extra 3 months there, but feel that I will not have a visitor from the Wyoming Resident Department for 186 days to insure how many days I've been in residency.

    3,4. Yeah, Now I need to make sure the HR people go along with the program.

    5. I have a company vehicle registered in OK.

    6.Yes, I'll register to vote

    7. The Bank Can Bite Me

    8. I don't get this. greeked? 10%? WTF?

  14. #39
    Join Date
    Aug 2008
    Location
    Peoples Republic of Taxachusetts
    Posts
    123

    Re: Refuge

    Quote Originally Posted by Scott View Post
    1. I have no intention of my wife living in Wyoming. We'll have to file separate returns.
    Is the mortgage jointly or just in your name? If it is jointly you'll have to split it 50/50 on both returns. Plus married filing separately has some drawbacks all their own.

    2. Currently I travel to Wyoming about 100 days a year to work. Wyoming residency requires I be there 186 days a year. I will happily spend the extra 3 months there, but feel that I will not have a visitor from the Wyoming Resident Department for 186 days to insure how many days I've been in residency.
    Yup, and you'll need to do it every year, I guess.

    3,4. Yeah, Now I need to make sure the HR people go along with the program.
    How do they do it now? If they're like the gang of idiots where my wife works I'd be kind of nervous.

    5. I have a company vehicle registered in OK.

    6.Yes, I'll register to vote

    7. The Bank Can Bite Me
    Okay, whatever floats yer boat, I guess. This part was more to show some evidence that you do in fact live in the jurisdiction you claim to, should you ever get called on this.

    8. I don't get this. greeked?
    My old boss was married to a greek gal. He quite often liked to discuss the what he considered the failings and proclivities of his brothers in law...hmm, dunno if I can go into this on a family board, but I shall take the bit between the teeth and proceed...Anyhoo in his vocabulary "greek" became a verb, and one that was a shorthand for the male on male sexual act. Or even better, he liked to drop it into conversation, as when you printed something to the network printer ahead of him, it became "Damn, you greeked me, Patrick," etc. I'm afraid I've picked it up in my vocabulary in that last sense.

    10%? WTF?
    I think you referenced this already. It is the 10% penalty tax you pay on early distributions from a retirement account. IOW, if you take an early distribution from a 401(k) and you're under 59 1/2 and no exceptions apply you pay this tax. So, take out $7000 from a 401(k) pay $700 for this. Then on top of that whatever your bracket is. e.g. If you're in the 28% bracket you pay $1,960, or $2,660 total.

  15. #40
    Join Date
    Aug 2008
    Posts
    99

    Re: Refuge

    I didn't see a pic of the place. I didn't know anyone could buy a decent house for $60,000 unless it was a mobile home like I have.

  16. #41
    Join Date
    Aug 2008
    Location
    ATL
    Posts
    177

    Re: Refuge

    1 bedroom, 1 bath in Wyoming = $60,000.

  17. #42
    Join Date
    Mar 2007
    Posts
    1,213

    Re: Refuge

    Quote Originally Posted by F&L View Post
    1 bedroom, 1 bath in Wyoming = $60,000.
    Actually much less.

    I'm goning to tour a place for 32,500 Friday.

  18. #43
    Join Date
    Aug 2008
    Posts
    99

    Re: Refuge

    Quote Originally Posted by Scott View Post
    Quote Originally Posted by F&L View Post
    1 bedroom, 1 bath in Wyoming = $60,000.
    Actually much less.

    I'm goning to tour a place for 32,500 Friday.
    Wow, maybe I'll sell the mobile home and move to Wyoming!

  19. #44
    Join Date
    Mar 2007
    Posts
    1,213

    Re: Refuge

    Quote Originally Posted by Pharmgirl View Post
    Quote Originally Posted by Scott View Post
    Quote Originally Posted by F&L View Post
    1 bedroom, 1 bath in Wyoming = $60,000.
    Actually much less.

    I'm goning to tour a place for 32,500 Friday.
    Wow, maybe I'll sell the mobile home and move to Wyoming!
    You'd be much less sweaty.

  20. #45
    Join Date
    Aug 2008
    Posts
    99

    Re: Refuge

    Quote Originally Posted by Scott View Post
    Quote Originally Posted by Pharmgirl View Post
    Quote Originally Posted by Scott View Post

    Actually much less.

    I'm goning to tour a place for 32,500 Friday.
    Wow, maybe I'll sell the mobile home and move to Wyoming!
    You'd be much less sweaty.

  21. #46
    Join Date
    Mar 2007
    Posts
    1,213

    Re: Refuge

    Quote Originally Posted by Scott View Post
    Quote Originally Posted by TKDLady View Post
    I think Wyoming is more cattle country isn't it? Montana is sheep country.
    I know nothing about Montana, but I see very few sheep in Wyoming.
    OK I took this pic:



    THERE ARE SHEEP IN WYOMING

    Its sorta weird how they pile together

  22. #47
    Join Date
    Mar 2007
    Posts
    1,213

    Re: Refuge

    Friends, I have sad news.

    Happily it has nothing to do with sheep.


    I discussed my plans with my boss. He claims that ethically he cannot support my "Tax Dodge." In addition, he felt that the move would prevent me from expensing out many costs that would more than equal tax savings.

    This means that the purchase of, say, a <45,000 second home would be a much more risky INVESTMENT...but it might still be worth the pease of mind.

  23. #48
    Join Date
    Dec 2004
    Posts
    1,749

  24. #49
    Join Date
    Mar 2007
    Posts
    1,213

    Re: Refuge

    Quote Originally Posted by Fayebelle View Post



    Good luck Scott.
    I'm gonna MAKE it happen.

  25. #50
    Join Date
    Oct 2005
    Location
    At Home
    Posts
    12,071

    Re: Refuge

    If you need the peace and quiet then go for it. As for the sheep picture, I know there are sheep there as in SD and Montana but I think it is still considered cattle country right?
    The brain is a wonderful organ; it starts working the moment you get up in the morning, and does not stop until you get to the office. (Robert Frost)

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •