Tax Issues -- Should I Move From Nevada To Idaho?

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Coffee
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Tax Issues -- Should I Move From Nevada To Idaho?

Post by Coffee » Tue Nov 30, 2010 10:50 pm

Hi, Gang:

My wife and I really want to move up to Boise, Idaho... early this coming year (2011). Which will mean selling our house in Nevada and also moving our internet-based business up to Idaho, I guess?

We really love it up there, and don't enjoy the craziness that is Las Vegas.

I know it will be more expensive to live in Idaho, from a tax perspective-- I'm just unclear as to "how much more expensive" it will be? Idaho has personal state income tax that (I think) is around 10% ... and I'm not sure about how many more business/corporate/franchise taxes there are? Or if that's much of an issue?

When I look on those web sites that compare tax burdens between States, it shows that the personal tax burden for Nevada is around 6.5% and Idaho is around 10%. So, paying an additional 4% more to live in Idaho isn't THAT big of a deal to me. If that's truly how much more I'd realistically be paying? I'd also imagine the overall cost of living will be slightly less up there?

If it helps: We're in the top tax bracket. (Aprox. $250k a year)

I just don't want to move up there and suddenly find out I'm paying an additional $4,000 per month in taxes, for the "privilege" of living in Idaho.

Unfortunately, I don't have the background in taxation to figure this out, myself. Can anybody here help?

I've already sent off an e-mail to my accountant (who will get back with me, next week). But in the meantime, I'd appreciate hearing some different input from you guys.

Thanks,
Coffee.

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BruceM
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Post by BruceM » Tue Nov 30, 2010 11:34 pm

Nevada does not have an income tax, so any personal income tax you pay in ID will be in addition to your current total tax liability. To see how much, you can pay your accountant to run his Quick Books for Idaho to see what your personal tax will be based on the most recent 2009 income data I'm sure he has on you.

But keep in mind there are other cost differentials. What is the property tax from two very similar houses in ID vs. NV?

What is the difference in sales tax times the amount you spend each year on things subject to sales tax for ID vs NV?

Whats the difference in the cost of a gallon of gas (gas tax)?

Here is a web site that address these (and other) state-related taxes and other expenses.

http://retirementliving.com/RLtaxes.html

We have relatives in ID (near Sun Valley), who we really enjoy visiting. What I most remember about our visits to Nevada is how *&%#! HOT it gets in the summer time.

BruceM

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White Coat Investor
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Re: Tax Issues -- Should I Move From Nevada To Idaho?

Post by White Coat Investor » Wed Dec 01, 2010 2:40 am

Coffee wrote:Hi, Gang:

My wife and I really want to move up to Boise, Idaho... early this coming year (2011). Which will mean selling our house in Nevada and also moving our internet-based business up to Idaho, I guess?

Thanks,
Coffee.
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Allan
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Re: Tax Issues -- Should I Move From Nevada To Idaho?

Post by Allan » Wed Dec 01, 2010 6:30 am

Coffee wrote:If it helps: We're in the top tax bracket. (Aprox. $250k a year)
FYI, the top bracket for married couples is having taxable income of approx $373,000, meaning with average deductions gross income of about $400,000 or higher.

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Post by Mitchell777 » Wed Dec 01, 2010 8:30 am

I can't speak to the tax issues. I've known a couple people who moved to LV to reduce their taxes. Bottom line, if I made $250K per year and really wanted to live somewhere else, I would make the move even if the taxes were more. I've vacationed in ID and it is nice especially if you enjoy the outdoors

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BigFoot48
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Post by BigFoot48 » Wed Dec 01, 2010 9:19 am

I would grab a copy of TurboTax and run my numbers through it for both NV and ID taxes and see the difference, then I would say "that's interesting" and start planning my move to the place I want to live.
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kramer
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Post by kramer » Wed Dec 01, 2010 11:48 am

Just a quick google on income tax rates shows that most income in Idaho is taxable at 7.1% to 7.8%, once you get above a few thousand dollars of taxable income.

This might be offset slightly with a deduction on your federal taxes (Schedule A), but then you might also run into AMT issues which is why it is better to rely on your accountant for a more direct assessment.

I know nothing about Idaho income taxes beyond this quick google. But my ballpark guess would be something like $1200/month additional state income taxes. As a percentage of income loss, this should be divided by your current after-tax income, not your before-tax income.

The answer could vary more if you are incorporated.

I would consider all the expense differences (housing, property taxes, flights, utilities, etc), not just income taxes. Also, I would consider how my business might be regulated and licensed in a different location. And any transition costs (employees, local services you depend upon that would have to change, etc).

Yes, I would certainly consider costs and regulations in where I want to live and not ignore them. Especially during your peak earning years.

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Post by mikep » Wed Dec 01, 2010 11:56 am

kramer wrote:Just a quick google on income tax rates shows that most income in Idaho is taxable at 7.1% to 7.8%, once you get above a few thousand dollars of taxable income.
Wow that's higher than california, which 8-9% doesn't kick in until 80k or so (MFJ)

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kramer
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Post by kramer » Wed Dec 01, 2010 12:09 pm

Here is a link . . . although not very in-depth, it is a start:

http://www.taxfoundation.org/files/stat ... 100327.pdf

The brackets listed are for singles, so probably double for marrieds.

Kramer

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Post by idahospud » Wed Dec 01, 2010 12:43 pm

At this Idaho StateTax site all the taxes I can think of are listed in an easy to read overview.

PS. Here in central Idaho we have received 14 inches of new snow during last night's and today's storm. My grandkids say due to the storm all Boise schools are closed today as well.

PS 1. Upon landing in Boise it might be very risky to call out 'Go Wolfpack!' at the Airport or anywhere else in the city.
PS 2.
EmergDoc wrote:You didn't see the recent football game?
EmergDoc,
In regards to your concern mentioned in the BCS thread, the 'Idaho Statesman' has not reported any suicide of any BSU football kickers. Suicide watch must be successful. :wink:

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ryuns
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Post by ryuns » Wed Dec 01, 2010 1:34 pm

With tax being a large concern for you, have you considered simply moving elsewhere in NV? Tahoe comes to mind, though price of housing and accessibility could be an issue. A lot of people like Reno. It's at least close to a lot of cool stuff.

By the way, a quick google brought to this: http://www.taxadmin.org/fta/rate/corp_inc.pdf on corporate taxes. This shows a 7.6% flat corporate tax for ID (not federal tax deductible) compared to nil for Nevada. Footnote for ID says "Minimum tax is $20. An additional tax of $10 is imposed on each return. Taxpayers under 100,000 or less of gross sales may pay 1% on such sales."

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Coffee
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Post by Coffee » Wed Dec 01, 2010 2:17 pm

Hi, Ryan:

Yes, I have. I like Boise over the Reno area because there is less snow, and less crime... from what I've been able to ascertain.

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Post by chaz » Wed Dec 01, 2010 2:33 pm

Coffee wrote:Hi, Ryan:

Yes, I have. I like Boise over the Reno area because there is less snow, and less crime... from what I've been able to ascertain.
A lot of retired cops moved to Idaho = lower crime.
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Post by KyleAAA » Wed Dec 01, 2010 2:42 pm

I'd be willing to bet the decrease in the cost of living will more than offset any additional tax burden. But that's just a guess. Plus, Idaho is a really nice state with a lot to offer if you're into the outdoors. And you seem to be making enough money that a few extra thousand or so in taxes wouldn't be a huge deal. I wouldn't think twice, personally.

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Post by Splash » Wed Dec 01, 2010 2:59 pm

Boise, like Spokane, always seeemed to me like very isolated places. Not very easy to get anywhere from Boise. At least in northern/southern Nevada, you can drive to SF or LA in 5 hours.

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Coffee
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Post by Coffee » Wed Dec 01, 2010 3:21 pm

Yes-- that's the idea.

Boise is a 1 1/2 hour flight to L.A.
Driving, it's about 12 hours to Las Vegas.

Making it a good place to ride out the Zombie apocalypse, in my opinion. ;)

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Post by chaz » Wed Dec 01, 2010 3:26 pm

Coffee wrote:Yes-- that's the idea.

Boise is a 1 1/2 hour flight to L.A.
Driving, it's about 12 hours to Las Vegas.

Making it a good place to ride out the Zombie apocalypse, in my opinion. ;)
With your income, you should live in Summerlin, much better than Las Vegas.
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Coffee
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Post by Coffee » Wed Dec 01, 2010 3:48 pm

Lived in Summerlin. Hated it.

We're in the best part of the Valley: A sub-section of Henderson.

But even still: You can't live in a bubble. Too many people in this city with tattoos on their face. Too many undesireable elements.

Yeah, yeah... that stuff happens everywhere. It just happens more in a city with 24 hour liquor stores, casinos and massage parlors.

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Post by chaz » Wed Dec 01, 2010 4:44 pm

Coffee wrote:Lived in Summerlin. Hated it.

We're in the best part of the Valley: A sub-section of Henderson.

But even still: You can't live in a bubble. Too many people in this city with tattoos on their face. Too many undesireable elements.

Yeah, yeah... that stuff happens everywhere. It just happens more in a city with 24 hour liquor stores, casinos and massage parlors.
Probably no guys with tattoos on their face in Boise.
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Gort
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Post by Gort » Wed Dec 01, 2010 5:42 pm

Forget tax implications! Forget transportation issues - you will work your away around these plus there are easy, non-stop daily flights to Seattle, Portland, SLC, Denver. Also, sometimes there are advantages to being isolated! Low crime, great natural beauty, capital city. Probably the largest city with the fewest tattoos :). Graffiti is rare and when it does occur there is a community uproar and it makes the evening news! You can go fly fishing downtown and then the opera later in the evening if you like. Four distinct seasons but winters are typically mild although we just got 6 inches of snow today!! It will be gone in a couple of days though. Make your decision by quality of life issues rather than money issues. I moved here from South Carolina 17 years ago and love it. Good luck on your choice.

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Post by Gort » Wed Dec 01, 2010 5:45 pm

...and football is only a game. Go Broncos :D

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Post by idahospud » Wed Dec 01, 2010 6:06 pm

Lots of tatoos here...and snow, snow, snow...not 6 but 14 inches today....and you will quickly get mugged just for shouting 'Go Wolfpack!'. I'd look to move somewhere else!

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Re:

Post by SR II » Fri Feb 03, 2017 2:12 am

Coffee wrote:Lived in Summerlin. Hated it.

We're in the best part of the Valley: A sub-section of Henderson.

But even still: You can't live in a bubble. Too many people in this city with tattoos on their face. Too many undesireable elements.

Yeah, yeah... that stuff happens everywhere. It just happens more in a city with 24 hour liquor stores, casinos and massage parlors.
You don't like living near Mike Tyson?

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sergeant
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Re: Re:

Post by sergeant » Fri Feb 03, 2017 2:46 am

SR II wrote:
Coffee wrote:Lived in Summerlin. Hated it.

We're in the best part of the Valley: A sub-section of Henderson.

But even still: You can't live in a bubble. Too many people in this city with tattoos on their face. Too many undesireable elements.

Yeah, yeah... that stuff happens everywhere. It just happens more in a city with 24 hour liquor stores, casinos and massage parlors.
You don't like living near Mike Tyson?
Umm, this thread is seven years old.
Lincoln 3 EOW!

chaz
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Re: Tax Issues -- Should I Move From Nevada To Idaho?

Post by chaz » Fri Feb 03, 2017 10:46 am

Though this thread is seven years old, it is entertaining.
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Re: Tax Issues -- Should I Move From Nevada To Idaho?

Post by gkaplan » Fri Feb 03, 2017 11:06 am

Hi, Chaz.
Gordon

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Coffee
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Re: Tax Issues -- Should I Move From Nevada To Idaho?

Post by Coffee » Fri Feb 03, 2017 11:32 am

We settled on Reno.

Pluses:

- Taxes
- We found a quiet neighborhood the is centrally located.
- Traffic is minimal
- Weather is (mostly) moderate
- Airport is easy
- Nine hour drive to my parents, five hour drive to my sister. Close-- but not too close.

Negs:

- Too much casino influence. It's changing, but slowly.
- Too many down-and-out retirees.
- Way too dry here. The skin on your fingers crack and you get terribly itchy at night.
- Allergies are pretty bad.

We've been here 5-6 years now. It's underwhelming. Not the worst place we've ever lived but not the best, either. Of course, it all comes down to personal taste but we're curious now to investigate Denver as well as Sarasota, Fl. Just not sure the weather isn't too extreme in both of these.

The search continues...

I'm a seeker though and recognize the likelihood of finding a place to settle down for the rest of my life probably doesn't exist.

chaz
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Re: Tax Issues -- Should I Move From Nevada To Idaho?

Post by chaz » Fri Feb 03, 2017 2:14 pm

Hello Gordon.
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rec7
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Re: Tax Issues -- Should I Move From Nevada To Idaho?

Post by rec7 » Fri Feb 03, 2017 2:22 pm

Try Amarillo
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Coffee
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Re: Tax Issues -- Should I Move From Nevada To Idaho?

Post by Coffee » Fri Feb 03, 2017 2:25 pm

Why? What do you like about Amarillo?

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