Setting up an Official Residence "Out of State"

Setting up an Official Residence "Out of State"

Developer · Boise, ID · Member since 2010 · 53 posts · 30 votes

We are coming to the college years with our kids and we are finding (no surprise) that college is expensive and very expensive if you are an out-of-state student.  As a full-time developer, investor and consultant, I could theoretically work from anywhere (although most of my income would still come from my Idaho).  Has anyone done this?  I'm thinking of buying a place in another state and officially making it my "home" (for tax purposes, for homeowner write-off, etc.) but the majority of my income will be from Idaho and my son will finish high school here.  Most universities look at the parent's residence status for the kids application - if I do this a year or more ahead of time, would I be able to have him enter a university in my new state as an in-state resident?  Any challenges or things to avoid?

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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    6y

    @Account Closed

    There are various things you need to do to change your tax home. The thing you want to avoid happening is the IRS deeming you that you live in multiple places and your travel then potentially becomes non-deductible(depending if you do have a business).

    Items such as registering for a new state ID, paying for utilities, applying for state voting, etc help establish your new tax home.

  • Developer · Boise, ID · Member since 2010 · 53 posts · 30 votes
    6y

    Thanks @Basit Siddiqi.  I am looking into the cost impact of the setup (new ID, car registration, etc.) but good point on making sure I do it in a way to avoid the "multiple home" situation where I can't be reimbursed for the travel.

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