State Taxes and Local Taxes

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Each state (and the Federal District) have their own taxing authority. Cities and counties also have their own revenue departments, that raise money from their local population. As businesses grow, they interact with more and more of these tax authorities, making State and Local Taxes (known by the acronym SALT in the accounting industry) a challenging area that firms completely specialize in.

Because we specialize in helping individuals and businesses relocate to income tax free Florida from high tax states, we spend a lot of time dealing with how New York State taxes (and New York City’s city taxes) apply to our clients and their companies.

These high tax locales hate losing their high earning (and tax paying citizens), and will often challenge your residency if you have extensive assets in your former state. We often help new (and prospective) Floridians move their tax residency to Florida, making sure to dot every “I” and cross every “T” to prevent their former states from attaching their taxes to our clients’ income.

During the The Tax Cuts and Jobs Act of 2017 (TCJA), also known as the Trump Tax Cuts or Tax Reforms, SALT taxes went from fully deductible to being capped at $10,000 per year. For most taxpayers this had little impact, but for high earners in states and cities with high tax rates, this change created a significant impact on their taxes. Because of the reduction in rates, most taxpayers still saw a reduction in taxes owed, but for high income earners in New York, New Jersey, or California, they found that their taxes were largely impacted by the tax code changes.

In contrast, areas like Florida with no state income tax watches their residents receive substantial tax reductions. During the pandemic, this economic impact combined with Florida’s relatively open economy caused many people to consider moving to Florida.

There are many non-financial reasons to move to Florida, like a growing economy, beautiful beaches, fantastic weather, and a uniquely multinational culture. However, the tax impact of the move often helps people make their financial decision. If you are considering the economic impact of moving to the Sunshine State, schedule a meeting with us to discuss what the tax impact will be.

Back-to-School Sales Tax Holiday Video

By |2021-07-27T20:28:02-04:00July 27th, 2021|Categories: #TaxTipTuesday|Tags: , , , , |

Hi, I'm Bette Hochberger, CPA, CGMA, and on today's Tax Tip Tuesday, we're going to talk about the upcoming back-to-school sales tax holiday. This is a very cool thing we do in Florida. It's been going on for; I don't even know how long. It's been going on for years, but basically, what's going to happen is there are many things that you can buy that are going to be sales tax exempt for going back to school.

Foreign Tax Issues for US Citizens Video

By |2022-12-16T10:46:25-05:00June 11th, 2021|Categories: #FinanceFriday|Tags: , , , , , , , , |

Today on Finance Friday, we discuss foreign tax issues for US citizens with Andre Benayoun JD, BBA. Andre is one of the most brilliant people I know; he is a partner at Marcum Accountants & Advisors and a family friend.

Florida Tax Holiday 2021

By |2021-05-31T13:08:56-04:00May 31st, 2021|Categories: #FinanceFriday|Tags: , , , , |

Florida's Tax Holiday is a sales tax holiday, which isn't really new in Florida. We've been doing this for several years, but it is a little different this year. Anyone familiar with Florida knows that the rainy season is hurricane season. Actually, it's starting May 28th; we've got the Disaster Preparedness Sales Tax Holiday right now. So what does that mean?

Why Are People Moving to Florida?

By |2021-10-21T15:46:28-04:00April 1st, 2021|Categories: Other Perspectives|Tags: , , , , , , , , |

Why are people moving to Florida? Spoiler Alert: It's not just the weather. With nearly 1,000 people moving to Florida every day, it seems like everyone on Twitter has an opinion about it.

What You Should Know Before You Move To Florida.

By |2021-10-21T15:44:30-04:00February 4th, 2021|Categories: Quickies with Bette|Tags: , , , , , |

Did you move to Florida during the pandemic? Well, we see you and want to prepare you with some tips and tricks in regards to documenting your move so you can avoid those pesky state taxes.

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