Tuesday, November 21, 2017

Q.  I'm a resident of Florida, previously a resident of North Carolina (before we started fulltiming). 

I work for a large (more than 50,000 employees) bank that has presences in all the states we visit. I do all my work in the RV or in misc. places, but never in a branch and only at a bank location when I travel to that location on business maybe twice in a year for a week each.

Do I need to worry about how long we stay in a state related to income taxes? Ie, if we are in a state more than 30 days, do I then owe that state taxes for that time? For more than that time? 

A.  States that have income taxes all have different requirements Normally it is not based on the amount of time you spend in any given state, but the amount of income you earn from that state. One of the best examples I can think of is the professional athlete.  Since they earn thousands of dollars per game (even if all they do is sit on a bench), they are required to file a tax return and pay taxes on this income. You didn't say if you were an employee with the bank or an independent contractor. If you are an employee, and you are currently a legal resident of Florida, you probably receive a W-2 form listing only the state of Florida. If however, you are an independent contractor, you may have several filing requirements. Good luck!

RV Rental

Q.  I have a RV that i have financed. I have a company that manages and rents it for me. The management company issued me a 1099-Misc and I also have a record of expenses. I was only able to use it last year for about a week. I don't personally/formally have a business but I'm generating income. Should I file as though I have a business with the RV asset and depreciation? Seems like a huge deduction. Any references you can provide to look into this further would be appreciated! 

A.  When you purchase an asset and hold it out for business use, yes it should be reported on your income tax return, and if you make $400 or more from revenue you are legally required to claim this income. In your case, you should file a Schedule E to report both the income and expenses from your RV rental. However, once you "take back" the asset or convert it to personal use, you will no longer be able to claim business deductions and if this should happen mid-year, you would need to pro-rate all expenses.