Place of Residence is the “Key” Factor of Nevada’s Tax Benefits

In order to take advantage of Nevada’s “tax hospitality” a taxpayer must make Nevada its principal place of residence, i.e. your primary home. Residency is single most important factor in gaining Nevada’s tax advantages.

A “close connection test” is implemented and must be passed in order for a taxpayer to establish state residency. The “close connection test” identifies if Nevada is the state in which a taxpayer has the closest social and business contacts, and more. Individuals who are considered “domiciled” in Nevada generally escape taxation. A corporation organized and domiciled in Nevada can also significantly reduce its state tax burden by shifting its corporate level of activity to the state of Nevada.

Owning real estate in the state of Nevada is a key factor when considering such tax advantages.