By TAHOE LUXURY PROPERTIES | Moonshine Ink
Nevada continues to see big growth in real estate sales and as Californians see increased taxes, residents look to relocate to tax-friendlier states. With no income tax and a plethora of corporate benefits, our neighboring state of Nevada continues to draw interest from Californians seeking tax shelter. In January, we saw a 40 percent increase in the sales of single-family homes in Incline Village and Crystal Bay.
February sales indicate the continuation of strong growth trends, as single-family home sales in Incline Village and Crystal Bay saw a 300 percent increase year over year. Additionally, the median price increased 46 percent, and the number of homes currently in contract increased 140 percent. Significantly, all this growth is occurring while inventory remains relatively flat, decreasing only 5 percent from 105 homes actively listed in February 2017 to 100 homes actively listed for sale in 2018.
This is mainly driven by tax implications that occurred as a result of the tax act that was passed recently by the Trump administration and members of congress. “As a result of Californians only being able to deduct $10,000 of their state income, it is more of an advantage to be on the Nevada side,” said Bill Dietz president of real estate and principal broker at Tahoe Luxury Properties.
However, even if you do have the money to purchase a home, establishing residency in Nevada is not as easy as it may seem. A few of the many factors looked at by the state of California when considering whether you’re a resident of another state include …
1. The number of days the taxpayer spends in California versus the number of days the taxpayer spends in other states and the general purpose of such days (ie: vacation, business, etc.) You must spend more days in Nevada than anywhere else
2. Where the taxpayers maintain a driver’s license
3. The state wherein the taxpayer’s children attend school
4. The location of the taxpayer’s bank and savings accounts
5. The state wherein the taxpayer maintains professional services, such as doctors, dentists, accountants, and attorneys
6. Telephone records
7. Location of residential real property and approximate sizes and value of reach of the residence
8. Where the taxpayer’s spouse and children reside
9. Where tax returns, both federal and state, are filed