Work in one state, live in another...

[derg]

Lets just say a lot of pilots kept their old Navy house in PNS (or at least the address), had their kids in public school in Georgia and got hit with a massive tax bill, in arrears, later on.

 

[hook_dupin]

everyone so upset but why do y'all think so many corporations have their HQ at an empty storefront in Delaware? It's not cause of the nice views of downtown Wilmington.

I offer that an additional significant factor is that Delaware has a very strong body of corporate case law such that most firms know how a civil case will go if a suit is filed.

Nevada has a similar tax structure for corporations, but not nearly the same participation.

 

[Hiboglossi]

I believe these companies have people that take the time to read tax statutes and legally abide by the rules, which favor them.

Well yes, and based on the statements in this thread it is quite clear that most individuals who try to claim somewhere they don't live as their tax home have not read the applicable tax laws. "You can make your tax address anything as long as you collect mail there occasionally" for example.

Whether or not you approve, it is also true that large corporations are in an excellent position to bribe government officials and have enough influence to have laws written in their favor.

 

[jweldon]

It's also true that the corporate tax rate is quite high in this company compared to other developed European countries. I find it strange that income is double taxed; once when earned by the company, and again when distributed to the owners and employees. Then again we have a large opportunity in this country to mix personal and business income to an extent that does not pierce the corporate veil, i.e. lots of business dinners.

 

[z987k]

everyone so upset but why do y'all think so many corporations have their HQ at an empty storefront in Delaware? It's not cause of the nice views of downtown Wilmington.

Thinking about this, and you'd want to talk to a tax person and probably lawyer, but...
Set up an LLC and be the only shareholder. Instead of you working for your employer, your LLC does(corporations are people). Put it somewhere with little to no corporate income tax like Delaware. Pay yourself from the LLC in anything but a "paycheck", perhaps dividends. Instantly you went from whatever tax bracket you're in to 15% unless you're over ~$400k a year.

 

[Cherokee_Cruiser]

Never ceases to amaze me how greedy and idiotic some pilots can be. And these are mainline pilots in the six figures, not some broke ass ones.