b'Dont Get Caught in the Cold:A Former Auditors Tax Tips for SnowbirdsAre you planning to migrate south to avoid yet another Minnesota winter? Before you pack your sunscreen and sandals, learn how the Minnesota Department of Revenues residency rules may impact you and how to avoid potential tax pitfalls.Snowbirds frequentlynd themselves on the hook for Minnesota income taxes for one of three reasons:Misunderstanding the residency rulesPoor planningMaking mistakes during an auditIf you use a software calendar, such as Microsoft Outlook, print a date and time stamped hard copy of your calendar at the end of Know the Ruleseach year. This will help prove that your calendar entries were not Complying with the rules is more complex than simply stayingmade a few days before you provided it to the auditor.outside of Minnesota for more than one-half of the year. This isTell Your Storyonly one of the two separate tests that you need to pass. Finally, do not stress if you receive Minnesotas infamous You also need to prove that you actually moved to yourresidency questionnaire, but do not complete it alone. This is sunny side beach home, which involves a 26-factor analysis. Youyourrst chance to tell your story. First impressions are important. may have heard about some of these factors, including: whereUse the questionnaire as an opportunity to explain why you you are registered to vote, in which state you have your driversmoved. The why may be as simple as not wanting to endure license, and whether or not you have abandoned your homesteadanother winter of below freezing temperatures. Whatever the status in Minnesota. However, auditors do not give all of thesereason, make your response thorough and detailed. You need factors the same weight. A legal professional can help youto convince the auditor you have actually moved and no longer understand which factors you should prioritize. reside in Minnesota.Make a Plan ConclusionYou need to plan your move, which includes creating andMoss & Barnett possesses the experience and insight to help plan documenting a narrative explaining when and why you intend tofor your residency change. Do not go it alone. Please reach out leave your Minnesota domicile. Auditors look for that moment to one of our Wealth Preservation and Estate Planning lawyersin time when you decided to pick up roots and retire infor assistance. another state.Once you make the move, you will need to document yourNathan Thompson is a member of our Business Law group whereabouts. As the taxpayer, you have the burden of proof. Useand Wealth Preservation and Estate Planning group. He a calendar to log your meetings, travel, and recreational events. focuseshispracticeontaxlawandnavigatesclients through the complexity of the tax rules.612-877-5302 | Nathan.Thompson@lawmoss.comLawMoss.com/people-nathan-j-thompson2'