Hello, I am a sole prop currently with a business located in Texas along with a rental property there. We recently bought another property in the NE to be closer to family (need help with the little ones) and have relocated.
I do not have a CPA, but think I really need to get one now that everything is getting more complicated. Can I keep the business in Texas and avoid the disaster of NE taxes?
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You moved to Nebraska? Or the North East / New England ?
eta I guess that ‘the NE’ is likely Northeast. But you might need to be more specific since tax rules depend on the state.
Northeast
state ?
Connecticut
Generally speaking, no, you can’t. I don’t have any specific knowledge about Connecticut state taxes, but it’s very likely that your income from your businesses in Texas will end up on your Connecticut state tax return since you don’t pay any state income tax in Texas. You should check with someone familiar with filing CT state tax returns to be sure.
[quote=“CrushinAOR, post:1, topic:2444, full:true”]
Can I keep the business in Texas and avoid the disaster of NE taxes?[/quote]
You can place things in a non-pass-through trust, therefore the income remains within the trust and is taxed within the trust. Not sure of the tax implications in regards to the new law however. You may even be able to utilize two pass-through entities owned by the trust, to possibly take advantage of the new law but keep the income there.