Are you new to Florida, or plan to move here soon? With sunshine, beautiful beaches, and lower taxes, Ciccarelli Advisory Services understands why! For 40-plus years, Ciccarelli Advisory Services has been helping families who have decided to make Florida their home, beginning with the steps to creating your Florida domicile. In general, Florida domicile brings with it tax advantages over domicile in other states with respect to income taxes, state estate taxes, and homestead.
The term domicile means the place where you live with the intent of making it your permanent residence. A person may have several residences at the same time, but in theory may be domiciled in only one. There are many factors that may be considered to establish Florida domicile, but primary ones include home, active business involvement, time spent, items near and dear, and family connections. For example, you must consider your Florida home your primary residence, and you must spend a greater percentage of the year in your declared domicile state than anywhere else. If you have a business outside of your domiciled state, the taxpayer’s role in the business, pattern of activity, and whether it is a passive or active investment may be considered. Also, items that are near and dear to you should be kept in your domiciled state; receipts and documents showing the transport of these items could be important to keep. Other factors, such as changing address forms, shifting banking and investment relationships, legal documents, various registrations, and church affiliations should all be maintained in your domiciled state. Be careful that your affairs are in line because even the smallest affiliation, like a resident fishing license from your previous state, could cause problems.
The other benefit of establishing domicile in Florida is the Florida homestead exemption. This exemption can protect your home from creditors (with four exceptions), give you a credit against your home’s assessment for tax purposes, and cap your property taxes to the lesser of 3 percent (in Collier County) or the rate of inflation. Florida homestead may also protect spouses for inheritance purposes.
If you are considering a change of domicile to Florida, it is important to discuss the advantages and disadvantages with your financial advisor, your CPA, and your attorney. Domicile should be looked at not only with a tax perspective but also with an estate perspective regarding rights of spouse and children at your death. An advisor versed in the steps for new domicile can provide a more complete package of instructions and discuss planning opportunities to help assist you in your decision to domicile.
Along with assisting with domicile issues, Ciccarelli Advisory Services has been helping families meet their lifelong goals by creating comprehensive, customized financial plans that work continually throughout every stage of life. Their highest priority is in designing a plan that reflects your family’s unique journey, paying special attention to your priorities and vision, and empowering you to achieve continual financial wellness. Your family may benefit from the insight and wisdom of their highly experienced team who will put you first and make sure the service you receive is the right fit for you and your family. They understand your family because they are a family. And, with the best interests of your family at heart, Ciccarelli Advisory Services will serve as your financial advocate providing guidance and execution—today, tomorrow, and for generations to come.
Investment advisory services offered through Ciccarelli Advisory Services, Inc., a registered investment advisor independent of FSC Securities Corporation. Securities and additional investment advisory services offered through FSC Securities Corporation, member FINRA/SIPC and a registered investment advisor.
Ciccarelli Advisory Services
9601 Tamiami Trail North | Naples
239-262-6577 | CASMoneyMatters.com