Moving out of state but keeping rentals

[Chris McCurdy]

My wife and I are moving from Texas  to Colorado.  We currently have 5 rental properties in Texas.  How do we go about avoiding the state income tax in Colorado?  I think we need to put them in a trust or something that stays in Texas but I’m am absolutely not sure and would love some advice.  Thanks so much!

Chris

[Linda Weygant]

Once you become a resident of another state, all of your worldwide income becomes taxable in that state.  With most states, you receive a credit for any income taxes paid to another state, but since Texas doesn't have state income tax, then all your income tax for the rentals will be paid to Colorado.

Trusts, LLCs and other pass thru entities will not help you avoid the tax.  

Welcome to Colorado!