Here are some best practices to comply with the presence test:
- Keep track of your travel days. This includes the dates that you arrive and depart from the state or territory in question.
- Document your reasons for travel. If you are traveling for medical care or business purposes, keep records of your appointments or travel itinerary. If you are traveling as a student, keep records of your enrollment and attendance.
- Establish a permanent home in the state or territory where you want to be considered a resident. This could be a house, apartment, or condo.
- Spend as much time as possible in the state or territory where you want to be considered a resident. This could include working, volunteering, or attending social events.
- Keep your family and friends close by. This could mean living near them or staying in touch with them regularly.
If you follow these best practices, you will be more likely to meet the presence test and be considered a resident of the state or territory where you want to live.
Here are some additional tips:
- If you are unsure whether you meet the presence test, you should consult with a tax advisor.
- Be aware of the exceptions to the presence test. For example, if you are traveling for medical care or business purposes, those days may not count towards the 183-day requirement.
- Keep good records of your travel and activities. This will help you to prove that you meet the presence test if you are ever audited by the IRS.
If you are considering relocating to Puerto Rico, Act 60 can be a great way to lower your taxes. Talk to us, we are accountants and tax advisor to see if you qualify and help you with the application process.
I hope this article was helpful. Is there anything else I can help you with? Feel free to reach out at [email protected] or 787-473-8985.
Disclaimer: The information provided on this website is for informational purposes only and is not legal or tax advice. You should consult with a qualified attorney or tax advisor to discuss your specific situation.