7 ms·

I know someone who knows someone who had a big exit recently and he said he moved and because of the tax situation, he's unlikely to even visit California for a

I know someone who knows someone who had a big exit recently and he said he moved and because of the tax situation, he's unlikely to even visit California for a few years, is there anything about the law that protects someone if they never return to the state, or is that bs? Good chance they don't want to come back for other reasons I guess!

gnicholas 6y ago
It wouldn't matter if he came back to visit. It's more important that he change his driver's license, voter registration, move his family, bring his pets, not own real estate here, etc. The state's theory (that I recall) doesn't relate to future visits to CA — it's all about what happened in the past. BTW, I'm happy to make a referral to anyone who ends up targeted by the FTB on this issue. My former colleague, who is still a tax lawyer, nailed the FTB in court when they went after one of his clients on this.
- codezero 6y ago
  Thanks for the answer, and the referral offer - I doubt my SV lottery tickets will ever win, and I'm staying in CA anyways, but maybe a friend might need help one day.
nostrademons 6y ago
"Residency" is based on what fraction of your time you spend in the state. It's easier to make a case that you're not a resident if you can say "Wait a minute, I haven't even set foot in the state of California in the last 2 years!" It's not that it's a hard & fast rule or loophole, it's that the law is one of those things that includes some discretion & wiggle-room, and you're less likely to be on the wrong side of the FTB & court's interpretation of it if there are facts you can point to that clearly suggest "not a resident".
- codezero 6y ago
  Ah that makes sense, sounds like it's just a cover your ass element, especially if you accidentally left some other loose end about.
seiferteric 6y ago
There may be a 10 year retroactive wealth tax coming soon and that is sure to scare a lot of wealthy people away.
brobinson 6y ago
It's important to have a _very_ clean severing of ties with CA: https://www.ftb.ca.gov/forms/2018/18_1031.pdf https://www.ftb.ca.gov/forms/2018/18_1031.pdf

gnicholas 6y ago

It wouldn't matter if he came back to visit. It's more important that he change his driver's license, voter registration, move his family, bring his pets, not own real estate here, etc. The state's theory (that I recall) doesn't relate to future visits to CA — it's all about what happened in the past. BTW, I'm happy to make a referral to anyone who ends up targeted by the FTB on this issue. My former colleague, who is still a tax lawyer, nailed the FTB in court when they went after one of his clients on this.

codezero 6y ago
Thanks for the answer, and the referral offer - I doubt my SV lottery tickets will ever win, and I'm staying in CA anyways, but maybe a friend might need help one day.

nostrademons 6y ago

"Residency" is based on what fraction of your time you spend in the state. It's easier to make a case that you're not a resident if you can say "Wait a minute, I haven't even set foot in the state of California in the last 2 years!" It's not that it's a hard & fast rule or loophole, it's that the law is one of those things that includes some discretion & wiggle-room, and you're less likely to be on the wrong side of the FTB & court's interpretation of it if there are facts you can point to that clearly suggest "not a resident".

codezero 6y ago
Ah that makes sense, sounds like it's just a cover your ass element, especially if you accidentally left some other loose end about.

seiferteric 6y ago

There may be a 10 year retroactive wealth tax coming soon and that is sure to scare a lot of wealthy people away.

brobinson 6y ago

It's important to have a _very_ clean severing of ties with CA: https://www.ftb.ca.gov/forms/2018/18_1031.pdf https://www.ftb.ca.gov/forms/2018/18_1031.pdf