Question

FL income from LLC as MA resident

Forum|Forum|4 years ago
October 27, 2021
1 reply
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I am a MA resident and made income as a real estate agent in FL this year. It was put into a Florida account for my FL registered S-Corp with the FL address of my S-Corp.

I am planning on moving to FL by the end of the year.

Is it tax advantageous (or does it not even matter) if I become an FL resident by the year's end so that the FL income is not taxed by MA? Or because I've been a MA resident for more than 180 days of this year, does that mean that amount is rightfully owed to MA regardless?

AdamNe

Hello @jeast1 !

Thanks for the question. I'm happy to help.

If you move to Florida and away from Massachusetts permanently during a tax year, you may be able to file a part-year resident return for Massachusetts for that year. You will be liable for any pass-through income (regardless of whether it was earned in FL or MA) for the dates during which you were a resident, and you will be able to allocate the income you earned after the date you moved as non-resident income (meaning it will not be taxed).

If you were a lawful resident during any period of time in MA during the tax year, there is no way to retroactively change that and prevent your income from being taxed in MA.

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AdamNe

@jeast1 just to clarify,

If you continue to own or keep up a permanent residence in MA, the 183 day rule applies. If you spend more than half your time in MA, you are a full-year resident.

However, if you give up your residency when you move and no longer own or keep up a permanent residence in MA, you will be considered a part-year resident in the year you move, and a non-resident in future years.

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