Thinking of Moving to Florida? Avoid Traps for the Unwary.

Every year a dozen clients (or more) talk to us about their decision to make Florida their primary residence, or on the other hand, about coming back to the northeast after they’ve resided in Florida.

Florida will remain a very attractive retirement destination due to warmer weather and lower taxes. But even with these advantages, you may want to think twice about establishing residency there if you are older than 72-75. In our experience, most clients with family in the northeast will be back for their “final years,” so your time in Florida may be short-lived.

Whether it’s Florida, Arizona, Tennessee, or any state, the change of domicile rules are all going to be about the same. In Massachusetts, for example, if the IRS decides to audit your income tax return or eventually your estate tax return, they will look at how many days you spent in Massachusetts and where you spent, or currently spend, your money. This will likely be the same no matter what state or states you live in. That said, do note that it’s rare for your move to a distant state is challenged. Moving to a nearby state and retaining a home in your current state will require additional diligence.

It’s important to take affirmative steps and to follow a checklist to distance yourself from your former home, especially if you are going to keep a residence in the state of your former domicile. Check out our printable Moving to Florida checklist to ensure you’ve done everything that you can do for a successful transfer of residence.

For either a far move or a nearby move to another state, we recommend a thorough work-up with your CPA and with us to try to avoid any “traps for the unwary.” Please email us or call if you have any concerns about a transfer of residence.