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Embracing Full-time Rving? How to Choose a Home Base?

Fulltime RvingMany of our clients happily embrace a life of full-time RV-ing. But before they drive away with one of our Class A motor homes, we usually tell them one thing—choose a state to use as their state of residency or ‘home base’. Wondering why that’s important? You will need to declare a single state as your legal home for tax, insurance, and other official purposes.

How to Determine Your Legal Base?

Legally speaking, you can be a resident of a state where you have the maximum numbers of ‘significant contacts.’  For some RV-ers whose contacts are spread all over the country, it becomes difficult to choose a particular state as their ‘home base.’ Throughout their lives they might have developed a vast network of ‘significant’ connections with respect to the following aspects:

•Location of workplace.
•Property ownership.
•Place where the driver’s license was issued.
•Place of voting.
•Place where a person’s will and other legal documents are registered.

If your significant contacts are spread across multiple states, don’t proclaim all of them as your legal residences. In such a situation, you will end up paying taxes to several states on multiple fronts. What is the way out? Find out the state that has the greatest number of your ‘significant contacts,’ and declare that as your legal home base. You can consult an attorney to take care of the paperwork involved in the process.

Choosing Home State on the Basis of Financial Benefits

The choice of your home base may affect your financial well-being differently. Consider the following state-specific expenses before choosing a state as your legal residence:

•Taxes including property, income, and sales taxes.
•Cost of both the RV and health insurances.
•Vehicle registration fee.
•Driver’s license fee.
•Emission testing fee.

It’s a natural tendency for RVers to move to the places where the above-mentioned expenses are minimum. However, while calculating the costs, don’t focus on just a single factor. For example, many RVers choose one of the no-income tax states (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming) as their legal home thinking that this exemption will help them save a lot of dollars. However, in reality, you may not achieve any significant saving if the expenditure on other areas exceeds the income tax.

Full-time RV-ing is all about enjoying your life. So,while choosing the home base, do consider the factors that give you pleasure. For example, if staying in touch with your loved ones is important to you, choose a state where most of your near and dear ones live, even if it is expensive to have the home base there.

It is never too late to embrace a carefree lifestyle. So, start planning for life on the open road. If you need a luxury motor home for the adventure, contact us here.