Table of Contents
- Why Your Former State Wants to Keep You
- Step 1: File Your Declaration of Domicile in Martin County
- Step 2: Update Your Driver's License and Vehicle Registrations Within 30 Days
- Step 3: Establish Your Financial and Administrative Headquarters in Florida
- Step 4: Document Your Physical Presence, The 183-Day Rule
- Step 5: Move Your "Items Near and Dear" to Jupiter Island
- The Bottom Line: Genuine Relocation Wins
So you've decided to make the move to Jupiter Island, congratulations. You're trading brutal winters and even more brutal state income taxes for oceanfront living and zero state income tax. Sounds like a no-brainer, right?
Here's the catch: your former state (looking at you, New York, New Jersey, and California) isn't going to let you go without a fight. And by "fight," I mean a domicile audit that can cost you hundreds of thousands of dollars if you're not properly prepared.
At Davies Wealth Management, we work with executives and high-net-worth families relocating to the Treasure Coast every year. We've seen what happens when someone assumes buying a home in Florida automatically makes them a Florida resident for tax purposes. Spoiler: it doesn't.
Let's walk through the five steps you need to take to make your Florida domicile audit-proof.
Why Your Former State Wants to Keep You
Before we dive into the steps, let's talk about why this matters. High-tax states are aggressive about auditing residents who claim to have moved to no-income-tax states like Florida. Between 2015 and 2017, more than half of former New Yorkers audited failed to prove their Florida domicile. The average tax recovery per audit? A staggering $144,270.
The burden of proof is entirely on you. You must demonstrate your domicile change by "clear and convincing evidence." That means paperwork, documentation, and a genuine lifestyle shift, not just a mailbox in Martin County.
Step 1: File Your Declaration of Domicile in Martin County
Your first official act as a Florida resident should be filing a Declaration of Domicile with the circuit court clerk in Martin County (that's where Jupiter Island falls). This document formally establishes your intent to make Florida your permanent home.
Is this document enough on its own? No. But it's the foundation of your domicile file and one of the most straightforward pieces of evidence an auditor will look for. Think of it as planting your flag.
The process is simple and inexpensive, usually around $10 at the clerk's office. Do it within a few days of your move.
Pro tip: Keep a certified copy in your records. You'll want easy access to this document if an audit comes knocking.
Step 2: Update Your Driver's License and Vehicle Registrations Within 30 Days
This one trips people up more than you'd expect. Florida law requires you to obtain a Florida driver's license within 30 days of establishing residency. The same goes for vehicle registrations, including boats and aircraft if you own them.
Auditors specifically examine:
- Driver's license status in both states
- Vehicle registrations for all vehicles
- Evidence that you surrendered your former state's license
Don't keep that New York or Connecticut license "just in case." Surrender it. Document the surrender. Auditors will notice if you're maintaining licenses in multiple states, and it raises immediate red flags.
Step 3: Establish Your Financial and Administrative Headquarters in Florida
Here's where things get comprehensive. You need to move the administrative center of your life to Florida. That means updating your address on virtually everything:
- Federal tax returns (use your Florida address)
- Bank accounts and investment accounts
- Credit card statements and bills
- Voter registration (register in Florida and actually vote)
- Health insurance policies
- Professional licenses (if applicable)
- Estate planning documents (wills, trusts, powers of attorney)
Speaking of estate planning, if you're relocating to Florida, this is the perfect time to review your entire estate plan. Florida has unique homestead protections and estate tax considerations that differ significantly from states like New York. Our estate planning tool can help you get started on ensuring your documents reflect your new domicile status.
Auditors will pull your credit card statements and checking account records to verify where you're actually spending money. If your Amex bill shows charges at restaurants in Manhattan every week while you claim to live on Jupiter Island, you've got a problem.
Step 4: Document Your Physical Presence, The 183-Day Rule
This is the big one. You need to spend the majority of your time in Florida, and you need to prove it.
The magic number is 183 days. If your former state determines you spent more than 183 days within their borders (including weekends and partial days), they can claim you as a "statutory resident" regardless of where you say your domicile is.
Keep meticulous, contemporaneous records including:
- Daily calendar entries (Google Calendar works, but be consistent)
- E-Z Pass and SunPass records
- Cell phone records showing which towers you pinged
- Credit card statements with location-based purchases
- Flight records and boarding passes
- Hotel receipts
Here's something people overlook: medical and dental records. Auditors increasingly scrutinize where you receive healthcare. If you're still seeing your longtime doctor on the Upper East Side four times a year, that's evidence against your Florida domicile. Find healthcare providers in Florida and establish those relationships.
We discuss these residency documentation strategies in detail on the Davies Wealth Management podcast at www.1715tcf.com, worth a listen if you're planning a cross-state move.
Step 5: Move Your "Items Near and Dear" to Jupiter Island
Auditors have a fascinating term for this: they want to know where you keep the "items near and dear to your heart."
This includes:
- Family heirlooms
- Artwork and collections
- Jewelry
- Photo albums
- Pets
Yes, your dog's veterinary records matter. If your golden retriever is still seeing the vet in Westchester while you claim Florida residency, that's a data point against you.
Beyond possessions, auditors examine family connections:
- Where is your spouse domiciled? Both spouses should establish Florida domicile.
- Where do your children go to school? Enrolling dependents in Florida schools is critical evidence.
- What's the relative value of your homes? Your Jupiter Island residence should be comparable to or greater in value than any property you maintain elsewhere.
The Bottom Line: Genuine Relocation Wins
Let me be direct: the key to surviving a domicile audit is genuine relocation. Attempting a sham residency for tax purposes will likely result in detection and substantial tax assessments: plus penalties and interest.
If you're moving to Jupiter Island because you love the lifestyle, the weather, the community, and yes, the tax benefits: you're in great shape. Just document everything.
If you're thinking about maintaining your "real life" up north while keeping a token Florida address, that strategy will almost certainly fail when tested.
At Davies Wealth Management, we help high-net-worth families navigate these transitions every day. From coordinating with your CPA and estate attorney to ensuring your investment accounts reflect your new residency, we take a comprehensive approach to wealth management that goes far beyond portfolio allocation.
Your Next Steps
If you're planning a move to Jupiter Island or anywhere on Florida's Treasure Coast, here's what I'd recommend:
- Start documenting now: even before your official move date
- Review your estate plan with our estate planning tool
- Consult with a financial advisor who understands Florida domicile issues
The stakes are too high to wing it. With proper planning, you can enjoy everything Jupiter Island has to offer: including the tax savings: without looking over your shoulder.
Welcome to Florida. Let's make sure it sticks.
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