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Tax Law (Questions About Taxes)/Spouses residing in different states

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QUESTION: My wife and I currently both live in illinois.  We are retired and also have a home in Michigan.  I would like to become a resident of Michigan and she plans on remaining a resident of Illinois.  How will this affect our taxes?

Regards,
Craig

ANSWER: Residence is driven by taxpayer intent.   You can still file matried joint for irs.  states will be a little more complicated, but not impossible.  Not Sure if those states have a marries separate option but I presume they do.

If yiu are not crystal clear about how this works out and document impeccably, the "loser" state Illinois for you (and Michigan for her)  will likely both argue you are residents.

Why do you want to do this?

Is it solet to make the sale of obe qualify as principal residence to avoid gains?






---------- FOLLOW-UP ----------

QUESTION: The reason for the change is the wife wants to stay close to the kids. I don't like the congestion and want to live 4 and a 1/2 hours away where I can fish, hunt and enjoy the outdoors. I also don't like Illinois restrictive gun laws.

Thanks,
Craig

Answer
Welcome to my world (ct restrictive gun laws)

As long as you follow the true intent.. register to vote, go to church get mail. Go to doctors etc
you should be fine.

State returns will be a little convoluted but doable.

Reach out next year for help if you nEed. I will give you my personal contacts  

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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).

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19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

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