I live in CA and bought land in NV. Using $$ from an irrevocable trust I paid off the land. in 2024 I will be moving to NV permanently. Can I expect a tax benefit?
Hi thesherrya,
I'm not sure what tax benefit you mean, but if you move permanently from CA to NV, you will become a NV resident and no longer be a CA resident. This means that you will no longer be subject to any CA income tax on income earned outside of CA. (I.E. you could still pay CA tax if - post 2024 move - you earn income from working in CA).
Since NV has no income tax, that would be beneficial in the future.
If you get rental income from the land in NV, it will be taxable in CA UNTIL you end your residency in CA. Once you end it, you will no longer have to pay CA tax on it. This is because as a resident of CA , you pay tax on all your income from any source. But once you change residences, CA no longer has a hold on you. If you sell the NV land in the future as a NV resident, CA will not tax you on it.
I hope this helps.
Marty