@Chela Rocks wrote:
Thank you for the detailed explanation. The domicile issue is a bit murky based on so many factors and changing intent (covid lockdowns in the EU). I can get any number of documents to prove domicile in any of the states - home is where I hang my hat (that day). I am guessing that I need to pick an intent and then gather the docs to "prove" it, should the issue come up.
Re: MA taxing. Thank you so much for this. I had read the MA law and obviously skipped over the allocation part. It will make a HUGE difference in the amount they will refund based on only being on-site for less than 30 days for the entire year.
Re: New rental. I have added the property as a new rental (renos added as capital improvements) but have decided to sell it in 2021. Therefore, it will never actually be used as a rental nor have rental income. At this point, should I just remove it as a rental property, and just deal with it as an asset that I will have to calculate capital gains on 2021 tax returns when I sell it?
Thanks again
The situation that would cost you the most state income tax (and which you should therefore avoid), is if you lived in Georgia for more than 183 days but it was never your domicile. If you lived in Georgia more than 183 days, you will want to make the argument that you changed your domicile from Netherlands to Georgia, and then later changed your domicile from Georgia to New Hampshire, with each change supported by both intent, and active steps to abandon the prior domicile. If you lived in Georgia less than 183 days, it doesn't really affect you if Georgia was your domicile or not, although it does change which tax form you would file. (If Georgia was your domicile, you would file a "part-year resident" return, and if Georgia was never your domicile, you would file a "non-resident" return.)
For the rental, if you will sell it in 2021 without ever having rental income, I would not list it as rental property on your 2020 return. At best, you would claim a deduction for some depreciation on your 2020 return that you would immediately pay tax on with your 2021 return. Keep proof of your rehab expenses, because they will increase your cost basis and reduce your capital gains.
