Many individuals and businesses are motivated to relocate
to the "Silver State" by the fact that Nevada does not impose a state
income tax. Is relocation an option you should consider?
CPAs and Consultants can help you evaluate your potential for Nevada
state income tax savings.
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.
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.
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.