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Posted by Harlan Lunsford on November 11, 2007, 4:21 am
Please log in for more thread options wolfman wrote:
> Through my selling some land I still own in Montana I found
> out that the state has a notice of tax owed filed against me
> for the year 2000 for capital gains. I did not work in the
> USA in the year 2000 so the entire tax amount if for capital
> gains. At the time I sold my land (in the year 2000) I spoke
> with a tax adviser and they said that I did not have to pay
> capital gains in Montana if I did not live there. So I did
> not pay. I contacted the state revenue department and told
> them that i moved to thailand in 1999. They did not argue
> with me that I did not have to pay tax because I no longer
> lived in Montana. They are maintaining that since I renewed
> my drivers license in 1996 and I did not turn it into the
> state when I left then I must still pay taxes to the state.
> The driver's license was good for 10 years and did not
> expire until 2006. By this reasoning then I would have had
> to pay tax for all of the years up to 2006 but they are not
> pursuing that angle.
>
> For the proof that I have that I moved my domicile is that I
> rented a house in thailand in 1998. I married in march of
> 1999 and spent approximately 7 months in thailand. I was
> back and forth trying to move everything to thailand. In the
> year 2000 I spent about 3 months in the USA not all of which
> was in Montana. One of these months was to handle the sale
> of the real estate in question. Another month was for a
> vacation to show my wife around the USA and the last month
> was for xmas. In the year 2000 I bought land and built a
> house in thailand. I also started a business in thailand.
> All of this shows that I had no intention of living in
> Montana but the Revenue department still claims i owe the
> tax because I did not turn my driver's license in to the
> state. This seems like a pretty stupid arguement to me since
> I bet that 99.9% of the people leaving montana to live in
> another state do not turn in their driver's license to the
> state. In contrast many states will give you a driver's
> license by turning in a valid drivers license from your
> previous state. As a matter of fact that is the policy here
> in thailand. You show them your valid license from another
> country and they give you a license without taking a test in
> thailand.
>
> Now I want to sell the land that I am gaining from the
> settlement of a lawsuit that I discussed in another thread.
> I am told that I can pay the 2000 tax under protest and go
> ahead with the sale of the land. What good will this do ???
> Once they get their hands on the money how am I going to get
> it back ? Is anyone familar enough with this type of
> situation to offer any advice ??
I think you've missed the point somewhere. You can forget
about "domicile".
It matters not that you didn't live in Montana, nor even had
other income in Montana, or anywhere for that matter.
What matters is that you sold Montana land and that sale, no
matter who you are, is taxable. I'm a resident of Alabama,
but if and when I sell some of the family land in Georgia, I
will owe Georgia tax on that.
ChEAr$,
Harlan Lunsford, EA n LA
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