Wyoming Tax Advantages
www.MoveToJacksonHole.com

The tax savings of being a resident of Wyoming.

Senario: On June 30, 2009, a person or entity sells $10,000,000 of stock it has held for over one year. The cost basis is zero. The state tax liability would be as follows:

*Consult your tax professional for more detailed information. 

A State-by-State Comparison "Wealth Friendliness"

Quick Facts About Wyoming Taxes

1. No state income tax: With no state tax on personal or corporate income, “you have more disposable income,”

2. Dynasty trusts: In Wyoming, you can shield your real estate from federal estate taxes for up to 1,000 years through a dynasty trust. “You can establish a trust in Wyoming for the benefit of your family or other beneficiaries,” Jones says. “You can transfer your real estate into a limited liability company or family partnership and then put that into the ‘dynasty trust,’ which can continue for a thousand years.” As a result, multiple generations can make use of and enjoy the property, without having to pay estate taxes or worse, having to sell the property in order to pay the taxes. A key point to remember: The trust must be administered in Wyoming.

3. No inheritance tax or estate tax: “Wyoming repealed its estate tax as of January 1, 2005,”

4. No state gift tax: “Somebody who owns property in Wyoming can ‘gift’ that real estate to their heirs without having to worry about paying a state gift tax,” .

5. No tax on out-of-state retirement income: “A lot of people in Jackson Hole use Wyoming as a second home,” . “They have retirement income that comes from other states where they may be a resident. Wyoming doesn’t tax that retirement income that’s earned outside of Wyoming, which is certainly beneficial.”

6. Low property taxes: “Wyoming has very low property taxes compared to other states,” . “The taxes that you do pay here are based on the assessed value of the property.” For Teton County, he says, the rate is 1.2 percent of a property’s assessed value. The rate for the city of Jackson is 8/10 of one percent.

7. No excise taxes: When you fill up your car’s gas tank or buy a bag of groceries in Wyoming, you won’t pay any state tax on your gas or food.

8. No tax on mineral ownership. “A lot of states charge owners a tax on their mineral ownership, but Wyoming does not,” “If you own minerals, you won’t pay a tax on it like you would your home.

9. No intangible taxes: Wyoming doesn’t make you pay a tax on financial assets like stocks and bonds.

10. No tax on the sale of real estate.

Besides the great beauty of the state and the investment potential in owning property in the Jackson Hole area, you'll be happy to know that Wyoming levies no individual income taxes. This makes the tax environment in Wyoming very competitive compared to other states. Plus, in addition to collecting no personal income taxes, Wyoming collects no corporate income taxes as well.

Much of the state's income is derived from mining and oil and gas revenue. Hence, Wyoming actually has a state budget surplus of over a billion dollars. Generally, you'll find that the state is fiscally conservative in its budgetary spending as well.

There are huge advantages to not only purchasing real estate in Wyoming, but also establishing residency here. You need not live in Wyoming year-round to claim residency. (Speak with an attorney or CPA when changing your residency.)

You could consider residency in one of the few other states that do not levy a state income tax…but why?  Jackson Hole offers the tax savings  and the lifestyle to enjoy it.

Here is what some others have to say about the tax climate in the state:

Wyoming’s 2006 Business Tax Climate Ranks 1st
Wyoming ranks 1st in the Tax Foundation's State Business Tax Climate Index. The index compares all 50 states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales and gross receipts taxes; unemployment insurance taxes; and taxes on wealth, including residential and commercial property.

"Bloomberg Wealth Manager" 2005 State Rankings
"This year's top-ranked state is ... Wyoming, which remains as tax-friendly as ever. It looks as if the Cowboy State's spot is secure for the future. Natural gas extraction in Wyoming is up, as are gas prices, and so the state politicians are in the enviable spot of having a projected budget surplus of more than $1 billion over the next two years. Combine that with an ethic of governmental frugality and low taxes, and you get an environment that is wealth-friendly."

Dynasty Trusts are a critical element in any plan to protect client wealth.

Assumptions: $500 million, trust lasting 120 years, 50% transfer tax every 50 years.   

See what your tax savings will buy…