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Subject Author Date
Montana and change of Domicile wolfman 11-09-2007
Posted by wolfman on November 9, 2007, 6:56 am
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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 ??

Any help is greatly appreciated.

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Posted by D. Stussy on November 10, 2007, 5:20 am
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> Through my selling some land I still own in Montana I found ...

When you renewed your driver's license, I'm assuming that
you did so in Montana in 2006. The State then has a point -
you didn't completely abandon your ties. Had you "renewed"
your license in another state (by obtaining a license from
the other state), that would have helped. What about your
voter's registration?

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Mark Bole on November 11, 2007, 4:21 am
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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.

Any gains from sale of real property in Montana (if it is
like most states) will have its source in Montana and
therefore will be taxable by Montana whether you are a
resident or not, possibly with an offsetting credit from the
state where you are a resident (so you don't have to pay tax
in two different states on the same income).

-Mark Bole

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Harlan Lunsford on November 11, 2007, 4:21 am
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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

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by DF2 on November 14, 2007, 1:38 pm
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In misc.taxes.moderated, Harlan Lunsford wrote:

>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.

I suspect that if you earned money in Thailand or sold land in
Nevada, Alabama would want you to declare that, based on your
resident status.

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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