AboutJohn L. Tidwell Expertise Unemployment tax law both state and federal; determination of employer employee relationship; the usual 20 commonlaw factors for making that determination; and what makes me a liable employer.
Experience Over 20 years of field audit experience with a state agency
Organizations none
Publications none
Education/Credentials Degree in Accounting from Falls Business College
Question QUESTION: I am looking at buying property in Mexico and building a house there. I will live in the house as my primary residency and will not use it as a rental. I have family in California so I will be coming back frequently. What determines my legal residency for tax purposes? Will my retirement income be subject to California taxes? Thank you
ANSWER: Tom:
You can use your California home as your legal residence for the US. If you retire in California they will require you to pay California income tax on your retirement.
John
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QUESTION: John, I apologize as I was probably not clear on my question. I would like to make Mexico my legal residence and avoid California taxes on my retirement income. Is that possible, if the Mexico property is my primary residence.
What are rgw residency requirements, e.g., over 6 months of year in Mexico?
Thanks again! Tom
Answer Tom:
All you need to do is declare Mexico as you residency. However, you will give up the right to vote.
If you earned the income in California that is funding your retirement they will still get a bite out of your retirement. Also, if you draw Social Security the USA will get their bite on your future income including calculation of retirement for Federal Taxes.
