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Jonathan Tierney
Jonathan Tierney, Certified Public Accountant
Category: Capital Gains and Losses
Satisfied Customers: 307
Experience:  Tax Accountant at Praxair, Inc.
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I have questions related to moving internationally. i live

Customer Question

i have questions related to moving internationally. i live in NJ now.
1-when i move out of the US, if I keep my LLC (it is in NJ) i will not be considered a resident of NJ for tax purposes because of it correct? my LLC has no physical office but maintains a registered agent adress in NJ for mailing purposes too. but i will still do NJ tax return as non resident because of my LLC?
2-if my NJ drivers license is still valid, while I live abroad, does this constitute any kind of residency for tax purposes?
3-i will move next month. at what point do i tell this to NJ tax department and IRs? Now? or when i do taxes next year?
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  Jonathan Tierney replied 1 year ago.

Hi, my name is ***** ***** my goal here is to provide you with the most complete and accurate answer possible.

If you are the only owner of the LLC, it would be treated as a disregarded entity and therefore all of its activity would belong to you, and would be reported on your own form 1040. You generally would tell the State of New Jersey that you moved by filing a part-year resident return for 2015. With the IRS, if you are a U.S. citizen or permanent resident, you would still file Form 1040 and put you new address. Are you a US citizen or permanent resident? The IRS has a change of address form, Form 8822 that you could fill out to update your address. This would allow the IRS to update its records as to where it should send any correspondence to you. You can locate it here: http://www.irs.gov/uac/Form-8822,-Change-of-Address

If there is any question as to where your true place a residence is, having a driver’s license issued from one address is one indication of address. However, this would be offset if you also obtained a driver’s license in the new country. How long do you plan on being in the new country and/or do you plan to maintain a residence in NJ while you live abroad?

I hope this answers your questions and please elaborate on your situation if you are concerned about continuing to be treated as a resident of NJ or the USA in general, as well if I can clarify anything or answer any additional questions. Thanks, Jonathan

Customer: replied 1 year ago.

hi

i am a citizen of usa but i will go back to my native country (i am also a citizen there still) and i will stay there for long time may be years, may be forever.

i do not have a house here. all left in the usa will be my LLC, my bank accounts, and my US mailing address for my LLC.

so will NJ still be considering me as a resident after 2015? i mean 2015 i understand i am resident but what about 2016?

i am hesitating to whether to extend my NJ driver licence while i am here as i may come to us for short business trip and may need to rent a car but may be it is not necessary and may cause headache in terms of NJ considering me a resident?

at what point i update my residency with IRS and NJ?

i have a permanent home in my native country where my parents live and i will also live there sometimes.

Expert:  Jonathan Tierney replied 1 year ago.

The United States taxes its citizen's income wherever it is earned, even outside the United States, though there is some exclusion of foreign earned income and a tax credit for taxes paid to other countries to minimize double taxation in both countries. For IRS purposes whether you live in the USA or not does not matter if you are a citizen, you are always taxed the same. The only way around this is if there is a tax treaty with your other nation of citizenship.

I believe the NJ Dept of Motor Vehicles requires you to notify them within 48-72 hours of any address change, so I am not sure if you could keep your NJ driver’s license without an address there. For tax purposes, you can simply file a part-year resident return for 2015 which would be due April 15. To update your address with the IRS, you could file Form 8822 or just file your 2015 tax return with your new address I wrote before. Are you the only owner of your LLC? Why do you plan to keep it and will it have any activity?

Customer: replied 1 year ago.

so keeping NJ driver license makes me considered as NJ resident or not - if i kept it?

i asked them on the phone, and they said i can keep it even after moving. i will check again, since this is conflicting info.

i am the only owner of LLC. actually i was not sure whether to keep it or not but it mainly makes money from some websites that i have and i can work for it form anywhere. websites make money by ad revenue and i also plan to sell downloadable things later so everything is online. i also use it to receive royalty payment of book i wrote and i plan to write more. does keeping that LLC make me resident of NJ? do you think it is redundant now?

Expert:  Jonathan Tierney replied 1 year ago.

New Jersey won't take away your license when you leave the state, however, if you no longer live there, I am not sure how long it would be valid, though this is not really a tax question and not my area of expertise.

The LLC is not redundant as it provides you with some protection against personal liability. An ownership interest in a New Jersey LLC does not make you a resident of that state. Any income of the LLC because your own income since you are the only owner and the entity is disregarded for tax purposes.

I hope this answers your question. Please let me know if I can clarify anything. Thanks, Jonathan

Customer: replied 1 year ago.

ok so bot***** *****ne is, having driver licence or having LLC, neither of them would make me be consiedered as a resident of NJ correct?

and what is disregarded entity you mentioned?

Expert:  Jonathan Tierney replied 1 year ago.

Having either a driver's license or LLC will not by itself cause you to be considered a resident of NJ.

A disregarded entity is an entity that is treated for tax purposes as though it does not exist and therefore any income, deductions, and credit of the disregarded entity are placed directly on the owner's tax return. A disregarded entity is not required to file its own tax return.

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