In the future, real estate owners at Clear Creek Tahoe will have the opportunity to become Nevada residents. Nevada provides fewer taxes and a lower tax burden than most other states. That's why Nevada is on every list of the top tax havens in the U.S. For example, in Nevada there is no tax on personal, retirement or corporate income; or many other taxes common in other states.
Benefits to Individuals:
Individuals who are “domiciled” in Nevada and become Nevada residents will generally escape state taxation of their income, except for income arising from sources within another state. Even taxpayers who may continue to be required to “source” one or more items of their income to a taxable state may still enjoy a significant reduction in their overall state tax burden.
Benefits to Corporations:
A corporation organized and “domiciled” in Nevada could significantly reduce its state tax burden. States generally tax corporate business income based on the corporation’s level of activity within and outside that state. Therefore, shifting at least part of the corporation’s business activities to Nevada will generally result in a reduction of state tax. In addition, being organized and domiciled in Nevada will eliminate state taxation of the corporation’s non-business income.
Benefits to Trusts:
Likewise, trusts with Nevada fiduciaries can gain a significant tax advantage. In California, for example, trusts with a California fiduciary are taxed on income retained in the trust, even if all beneficiaries are California non-residents. With a Nevada fiduciary, non-California source income, distributed to non-California beneficiaries or retained and taxable in the trust, will escape California taxation.
All of this goes to show that a move to Nevada is a move to the greener pastures of a top-ranked tax climate.
**Clear Creek Tahoe does not guarantee the accuracy of this information and recommends that each individual contact his or her personal tax attorney.
