Investing from abroad - U.S. state residency

5 Replies

I was a Florida resident before going overseas, so claim Florida as my state of residence. This has tax advantages as there are no state taxes.

What if I were to invest in a property in another state as a vacation home (e.g. a duplex where I rent half and vacation in half), would I be compelled to change my state of residence?

@Edward B. is correct, as long as you are in the military you can leave it where it is at.  However, if you purchase a primary residence in another state, look into their homestead exemption laws before you get tempted to claim that

My husband and I are residents of Texas, we own a home in Georgia (although ours was a primary residence at the time, not a STR or LTR like yours will be), if we had claimed the homestead exemption in order to save on our property taxes we would have been required to change our residency to GA and pay state taxes. The amount of state taxes we would have had to pay far exceeded any property tax savings we would have received, definitely not worth it.

@David Boley you will still need to file state taxes for any income you earned in the second state though -- depending on the state. It's usually a non-resident income tax for that state. So be sure to check with a local tax professional.

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