Claiming residency on a 2nd home

[Corben Briggs]

Hey guys,

I'm currently living in MA and investing in some STR's out of state. Had my eyes set on a NH for a little while now and wanted to see if anyone had any advice/insight on claiming a 2nd home / STR property in NH as your primary residence in order to take advantage of NH not having state income tax. The savings in state tax alone would be significant and from what I can see wouldnt be too difficult to "prove" I live there for more than half the year considering its only a couple hours away.

Is anyone familiar with doing this or have any advice on how it could work?

anything helps!

Cheers!

[Bill B.]

If you move there, get owners home insurance, utilities in your name, not a landlord policy, move all your billing, medical, voting, car registration, etc etc there you should be able to prove you live there 6 months. As long as you don’t rent it out more than 182 days per year as that would be an obvious gotcha. Then as long as you don’t have a job back in MA (or you’d be taxed there anyway) and your properties aren’t in states with income tax (as they would tax you anyway) as long. You’re there at least 183 days you should be good. 

Just don’t fake it, it’s way too obvious, super easy to get caught, and they can catch you in 2-5-10 years, and you’re guilty for all those years. You never “got away with it” until you die.  probably a felony, definitely penalties because you’ll be lying to the MA and the NH state government. (People often forget they’re getting a property tax discount for their primary so they forget that crime of telling the state it’s their primary home when it’s not. Usually comes up the other way when they leave the state and turn their old home in to a rental and keep it registered as owner occupant.)

It’s defiantly the reason I will never spend 183 days in MN and NV remains my home base. MN would even want income tax on my NV rental income, no thanks.