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Strategies & Market Trends : Dividend investing for retirement

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To: Bread Upon The Water who wrote (12533)	9/1/2012 12:10:54 AM
From: E_K_S	3 Recommendations Read Replies (3) of 34328

Hi Bread - OT - No State Taxes in Nevada Just finished my move to NV w/ no state income tax. My CA home is now my vacation home w/ my residence now in NV. If I ever wanted to rent out my vacation home in CA, I would have to pay CA state income tax on the revenue from that rental. My CA State taxes were more than my Federal taxes. All of my income is derived from my stock portfolio(s) w/ the dividend income making up the substantial part. My dividend paying stocks do not care where I live so I decided to move to South Lake Tahoe Nevada. The other nice benefit of NV w/ no State income tax, when I fund my ROTH from my IRA (I plan to do a partial funding each year for the next several years), there is only the Federal tax I pay (no state tax). I see no reason to move back to CA and pay all of those State taxes (I still pay property taxes on my "vacation" home) but I have left the door open to do so by keeping my original home there. I maintain a pretty low property tax base as I have owned that home for 30 years. If I sell that home and decide to buy later, not only is there a large capital gain tax I must pay but my property taxes would go up 5x for a similar property. Same thing has been going on w/ NY and NJ residents moving to Florida (another state w/ no state income taxes). I believe Washington & Texas are other states w/ no income tax. My move is nice as my properties are only 256 miles away and is only a 4 hour drive. No children at home so different schools during the year are a non issue. There are certain things I must do to maintain my NV residence but the total tax savings is worth it to me. I figure I save at least 10% off the top and CA is due to increase their income taxes again in November. That's one of my best "dividend" payers, not having to pay CA State tax any longer. Doing the move (picked up a nice distressed property near the Lake) and some of the logistics (including the remodel) was a challenge. This has been in the plans for many years and the timing was right to make my real estate purchase late last year. EKS

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