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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 585
Experience:  10 years experience
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I want to retire in nevada,my sole source of income will be

Customer Question

I want to retire in nevada,my sole source of income will be my pension,my 401k,the equity from my home sale that i would use as a down payment for my new place in nevada.my wife and i would like to get a rental in Califronia to use when we come to visit. can i have a rental in our names to do this?
Submitted: 2 years ago.
Category: Tax
Expert:  Lev replied 2 years ago.
Yes - you may have rental income from California.However if you will be a Nevada resident - ONLY Nevada may tax your retirement income - and because Nevada doesn't have income tax - your pension and 401k distributions woudl NOT be taxable for you.However rental income from the California property woudl be income from California sources - and as such will be taxed in California.
Customer: replied 2 years ago.
no i want to rent a place in california so i have a place to stay when i visit
Expert:  Lev replied 2 years ago.
If you will rent a place in California - that is OK.However - there will be a risk the California taxing authorities will be consider you as a resident...That may result additional tax assessment on ALL your income.While there is nothing wrong in renting dwelling - you woudl put yourself in the gray area - and that will make very hard to proof that you moved out of California and actually changed your residency.