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Radical Personal Finance

1014: How To Avoid Being Nailed By a State Income Tax Auditor

Radical Personal Finance

Joshua J. Sheats, MSFS, CFP, CLU, ChFC, CASL, RHU, REBC, CAP

Finance, Retirement, Insurance, Business, Money, Education, Self-improvement, Financial, Independence, Growth, Advice, Investing, Family, Personal, Radical, Christian, Faith

4.41.9K Ratings

🗓️ 9 May 2024

⏱️ 32 minutes

🧾️ Download transcript

Summary

Transcript

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0:00.0

Welcome to Radical Personal Finance headline of today's articles from Bloomberg.

0:03.2

New York's rich get creative to flee state taxes.

0:06.8

Auditors are on to them.

0:09.5

At New Jersey's Teeterboro and Long Island Islip airports, dozens of private jets destined for Florida,

0:16.0

take off at times such as 11.42 PM or 1154 PM.

0:21.7

Over at JFK, a regular flight from San Juan Puerto Rico arrives at a

0:25.3

seemingly purposeful time about 15 minutes after midnight. Meanwhile tax

0:31.0

attorneys tell stories of clients idling and their luxury SUVs near the New Jersey entrance to the George Washington Bridge shortly before 12 a.m.

0:39.4

waiting for the clock to turn before crossing the state line to New York.

0:43.9

When it comes to taxes and the wealthy, every minute matters, especially for those who have left

0:48.7

New York and declared residency elsewhere.

0:51.7

At a time more high earners are departing, or at least are claiming to,

0:55.2

state officials are stepping up already intense scrutiny to make sure former residents have actually

1:00.4

moved. It's a complex operation that involves cutting edge artificial

1:05.1

intelligence and tracking everything from travel to the location of people's pets.

1:10.4

We'll continue in a moment, but the basic outline of this article is something that you

1:14.8

need to be aware of if you are wealthy and you are trying to manage your tax costs properly.

1:21.0

One of the most important concepts in tax planning is to pay the taxes that you owe, but not to inadvertently create a tax obligation through short-sighted behavior.

1:33.8

And one such behavior is spending a significant amount of time

1:37.2

in a high-tax jurisdiction in an unplanned manner.

1:41.6

Now, we'll talk here in just a moment more about the timing,

1:44.3

but one of the most important features

...

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