diehnel

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About diehnel

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  1. Montana LLC RV Titling: Tax avoidance or Tax Evasion?

    Actually, there is more to it than a Montana LLC. When we purchased our last motor home we learned a lot about these issues. The real estate reforms put in place after the meltdown also have an impactpn this issue. According to our lender, under the current laws, a lender (bank or otherwise) who grants a mortgage to purchase a home, MUST collect the first years taxes and some other real estate fees upon making the loan. The penalties for not doing so are fairly significant for the lender. There is a great deal of confusion among lenders and the government agencies enforcing these new rules about whether a motor home used as a full time residence constitues a "home" for the purposes of this law. The issue has been raised, but Congress has not seen fit to address the issue. The lenders are faced with two questions: (1) is this purchase actually a mortgage for a home: and,(2) if it is, how do they collect the taxes and other fees when a motor home has a completely different set of fees from real property. SInce there are stiff penalties for not following the rules, it is financally much better for the lender to refuse to make the loan, rather than to risk the penalties. I am a retired DMV manager from Oregon. We faced the questions about non-Oregon residents registering motorhomes Oregon to avoid taxes in other states for years. It is a legal morass with a lot of risks if you get caught. Just be aware that what ever state you are in, the agencies know which addresses are real places to live and which are "mail services." If you attempt to use a "mail service" address for a residence address you will ultimately be found out. And remember, IRS could care less where you live or what address you use. They are only interested in you paying taxes. If you own a house or property to which you return - or plan to return - in a state, that state probably considers you a resident of that state for tax purposes. Under their laws, they can usually require you to pay vehicle taxes. Actually, there is more to it than a Montana LLC. When we purchased our last motor home we learned a lot about these issues. The real estate reforms put in place after the meltdown also have an impactpn this issue. According to our lender, under the current laws, a lender (bank or otherwise) who grants a mortgage to purchase a home, MUST collect the first years taxes and some other real estate fees upon making the loan. The penalties for not doing so are fairly significant for the lender. There is a great deal of confusion among lenders and the government agencies enforcing these new rules about whether a motor home used as a full time residence constitues a "home" for the purposes of this law. The issue has been raised, but Congress has not seen fit to address the issue. The lenders are faced with two questions: (1) is this purchase actually a mortgage for a home: and,(2) if it is, how do they collect the taxes and other fees when a motor home has a completely different set of fees from real property. SInce there are stiff penalties for not following the rules, it is financally much better for the lender to refuse to make the loan, rather than to risk the penalties. I am a retired DMV manager from Oregon. We faced the questions about non-Oregon residents registering motorhomes Oregon to avoid taxes in other states for years. It is a legal morass with a lot of risks if you get caught. Just be aware that what ever state you are in, the agencies know which addresses are real places to live and which are "mail services." If you attempt to use a "mail service" address for a residence address you will ultimately be found out. And remember, IRS could care less where you live or what address you use. They are only interested in you paying taxes. If you own a house or property to which you return - or plan to return - in a state, that state probably considers you a resident of that state for tax purposes. Under their laws, they can usually require you to pay vehicle taxes. Many state also have rules about how long you can be in a state before you are legally considered to be a resident and automatically subject to their laws and fees. These range from 30 to 90 days or more and vary state by state. Now what may be a bit of good news, but I do not know how courts are treating it. A few years ago, the State of California was sued over how it calculated residency - specifically for welfare payments. The US Supreme Court ruled in a very broad statement that was not limited to the welfare issue. that US Citizens are residents of the United States AND are residents of whatever state they say they are. Someone needs to follow up on what effect this ruling has on other state laws affecting residency.