A Taxing Decision

Whether you're planning for your own retirement or helping family members or other retired folks plan a move to another state, taxes may play a key factor to consider when choosing a location.

This link takes you to The Retirement Living Information Center's 2008 Taxes by State guide which summarizes the tax requirements for each state, including income taxes, exemptions for seniors and how retirement income and real property (i.e., real estate) are taxed.

The center advises retirees to look beyond state taxes and review local property, sales and income taxes as well. You might find that your chosen state isn't the welcome tax haven you thought it was. For example, California is one of six states that is particularly tough on retirees because it has a relatively high top tax bracket and fully taxes most retirement income.

I'm specially trained on matters concerning residential real estate investments so contact me if I can be of assistance.