Laid off people turned Ex-Pats Living on the CHEAP?

[ywr969]

Originally Posted by Super Suz

my inevitable lay off in June

february, in my case, & i'm definitely looking forward to it -- woohoo!

Originally Posted by Super Suz

what if I find another job just like the one I have right away?

you just had to go & spoil it with something like that, didn't ya???

[Stonewall]

Originally Posted by Super Suz

OH! This thread is graced by the presence of Stonewall. Thanks for all you do with the White Mountain Research Ride. It was a blast and hope to do it again some time.

Stonewall, you already living the dream of on the move and free?


Suz

Thanks Super Suz , but their is always room for improvement.

[buls4evr]

You probably know that the IRS people have really been cracking down on ex-pats not paying income taxes Super-Suz as this has been on tv recently. In this electronic age it is pretty hard to hide unless you use cash for everything. If you NEVER plan on coming home again you might get away with this, but as soon as you set foot back in the USA you are tax delinquent for not filing and they are after you. You have goods with no income? Not possible. You just became a felon for not filing 1040s and paying.

That leaves you with what you can do legally. Legally you can sell your property and go perm RV. This keeps you from paying property taxes to any state legally but you still have to pay income taxes on money from US. This savings is no small thing. For instance I pay a perm $200 fee on an RV plate. In exchange I save $3600/yr in property taxes and gain mobility to go where I want.Add that $$$$ savings up for 5 yrs. and it buys you a nice new bike every 5 yrs!

You could renounce your citizenship but then your declared country expects taxes so that doesn't get you free either. So the game is just to reduce taxes not eliminate them. Taxes and death are certainties.


Oh ....and RiverRat Besides Costa Rica and Panama you described Somalia. It's not all about the weather and riding...

[ywr969]

Originally Posted by buls4evr

Legally you can sell your property and go perm RV. This keeps you from paying property taxes to any state legally but you still have to pay income taxes on money from US. This savings is no small thing. For instance I pay a perm $200 fee on an RV plate.

what kind of RV? in what state?
i have '95 fleetwood bounder (38') for which i pay more than that every year!

Originally Posted by buls4evr

In exchange I save $3600/yr in property taxes and gain mobility to go where I want.

my prop taxes aren't that high, but you certainly make a good point.

Originally Posted by buls4evr

Add that $$$$ savings up for 5 yrs. and it buys you a nice new bike every 5 yrs!

woohoo!
i like how you think.

[Stonewall]

The Rv idea seems to be the way to go. Their is a demand for tradesmen who will work for cash. Maximizing free government land for camping is always helpful. Up here from May untile 1 October their are 4 campgfround that you can stay all summer at for $300. If I can help anyone headed this way, let me know, but I do recomend waiting for it to warm up

[Super Suz]

Wow, I could live in an decent sized RV very comfortably for years, I think. I could save tons of money and I love saving money. It will not be much of a change from my comfortable SF studio apartment I used to live in.

But I need air conditioning, a heater, and .... insurance

[ywr969]

Originally Posted by Super Suz

But I need air conditioning, a heater, and .... insurance

we have all of the above with our RV. in fact, we lived in it full time this past summer. it was awesome.

[buls4evr]

969...... In Michigan we have a $200 fee for a lisc plate that is a permanent plate for a 2500lb+ trailer, for as long as you own THAT TRAILER. Less than 2500lbs.(cargo trailers) are $75 permanent. Long as you keep them that is all you ever pay. A good deal....but MI RV dealers hated it as they said it kept people from buying new trailers. I have the same 30ft. that I bought in 02.

We pay horrendous property taxes in MI so that $3600/yr. is not out of line up here. It represents to a large degree, local school funding, which was moved from state to local funding by the state about 10 yrs ago. So you see an RVer can avoid huge local taxes and, because I am a state employee retiree I pay no state income tax as well, no matter what state I am actually in. A pretty good gig. Can't avoid federal taxes though....you are stuck with those.

Best part though... if you hate your neighbors then hitch up and go.

Worst part... I feel the need for a big garage at times.

[SilkMoneyLove]

We pay horrendous property taxes in MI so that $3600/yr

This is what we pay in WI too. Another thought would be to rent out your house after getting rid of most of your stuff. That way, you can enjoy your RV/Extended el cheapo vacation life until you decide otherwise. IMO - it gives the freedom of choice, which is what I think the goal is here (chose which place to stay, how long, as cheap as possible). Using a management company makes things pretty easy, even though it cuts into your income.

This gives you a location to put on your taxes, if nothing else. Might make things easier to try for awhile without having to change your Drivers License and license plates to each new place you live if you are there for more than 30 days as a primary residence.

I suppose you could always buy one of those $150 homes in Detroit and use that as your primary residence. Maybe better off in a state without income tax. These states are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming (I had to Wiki it).

[Super Suz]

Yeah. You can open up a bakery with all the dough saved on taxes .... if worked out right.

[RiverRat]

Originally Posted by Super Suz

Wow, I could live in an decent sized RV very comfortably for years, I think. I could save tons of money and I love saving money. It will not be much of a change from my comfortable SF studio apartment I used to live in.

But I need air conditioning, a heater, and .... insurance

With an RV you'll want to find an inexpensive state to register it in if you want to go CHEAP. AZ, CA are not cheap for RVs. Also you'll want to claim residence in a tax friendly state depending on your income.

I'm thinking about a 30-34' Class A gas rv. Parking it legally on long term BLM land isn't much money. Since you're boondocking you'll need to ration use of water, generator, and propane.

I ride up and chat with the snowbirds/wanderers and many of them are very willing to share their experience being full timers. Every one I've talked with is happy not to be tied to a traditional house. If they don't like their neighbors you just move!

[ywr969]

Originally Posted by RiverRat

AZ, CA are not cheap for RVs.

now you tell me!

Originally Posted by RiverRat

I'm thinking about a 30-34' Class A gas rv.

will this work?

[kdub]

Originally Posted by Super Suz

Wow, I could live in an decent sized RV very comfortably for years, I think. I could save tons of money and I love saving money. It will not be much of a change from my comfortable SF studio apartment I used to live in.

But I need air conditioning, a heater, and .... insurance

That insurance is the biggie. We bailed out years ago - traded socal for central washington. The cost savings was amazing but I've kept my federal job for the health insurance. 3 fusions, 4 lamenectomies and 3 electrothermalanullaplasties has me hanging on for a few more years till I can call it quits for good.

[kraven]

Cheap states to register in are states like NH and TN that have no income tax.
I can register my vehicles and then renew the registration online annually with TN. Insurance is pretty inexpensive for vehicles too.

Beware the RV thing though if you're the kind of person who bounces off a low balance in your savings. If the rear axle falls out of it, or the trans takes a crap, you're going to need a couple thousand to have it fixed, if you can't do it yourself. Even then, you're looking at a few hundred for parts if mechanicals die. It's conceivable that the rear axle, driveshaft, transmission, and engine could all take a crap at once or in the same month. $$$
And, of course, you have to maintain it. Plumbing and electrical need to be maintained and repaired, batteries have to be replaced with some frequency, and then there's routine maintenance like oil changes and tires, etc.
Make sure to have a safety cushion made of cash for RV repairs and maintenance.

[kraven]

If you plan on boondocking with a bike or a pickup/bike combo, same rules apply- except they're more dire.