If you can establish residency in Florida, you can potentially save thousands of dollars each year. Getting it means somewhat more diverse in terms of state income tax than it does in terms of Florida asset protection.
Although there may be specific time requirements related to income taxes compulsory for other states, there is usually no requirement for Florida residency for asset protection.
Most of the time, individuals that come to Florida to dodge the cold winters up north try their best to establish residency to avoid the high-income tax rates that are compulsory in northern states.
You can also contact a tax professional for legal guidance and see the taxing requirements in the northern state and whether it is good or bad if you become a Florida resident.
Conditions and requirements for Florida residency
There are no specific requirements to become a Florida resident for asset protection purposes. Asset protection is the lawful and legal structure of someone’s assets and income to protect them from ruling creditors.
Here are some of the factors that evidence your intent to live in Florida for asset protection benefits:
- Declaration of domicile
- Place of employment
- Registration to vote in Florida
- Informal statement regarding residency
- Designated mailing address
- Florida tags on all vehicles
- Termination of previous state or country residency
- Getting a Florida driver license
- Using a Florida address on Federal income tax forms
Naturally, if you try hard, the stronger your claim to Florida residency. It would help if you severed ties to the state you moved from to become a resident and establish your residence here.
For example, turn in your driver’s license out of Florida, sell your present resident that is out of the state, close your bank accounts of the previous form. If your license and vehicle registration are from somewhere else, it is difficult for you to claim Florida residency.
➡LEARN MORE: How to get snap benefits in Florida?
What do I need to obtain residency for tax purposes?
You need to live at least six months in Florida as a resident to get residency for tax purposes. It is not a strict rule, but most tax professionals recommend it to avoid any kind of situation where they face difficulty getting residency in Florida permanently.
Benefits for Florida Residents
Among any other state in the country, Florida residents enjoy some of the best asset protection laws. Some of the essential types of protected assets in Florida are tenants by entireties, the homestead exemption, and head of household exemption.
The most famous one is the Florida homestead exemption. This protects individual homesteads from force sale by ruling creditors. Without any dollar cap, the homestead exemption is unlimited. ½ acre is an average limit if the property is inside a city and 160 acres if the property is in an unincorporated part of the country.
Tenants By Entirety is an expensive version offered by Florida that protects personal property such as business interest, bank accounts, specific equipment, and furniture owned by the married couple from the debts of one of the spouses.
Besides all these, many other benefits are offered to Florida residents, which help them to save thousands of dollars every year.