California Cross-Border Tax Practice

Our California Cross-Border Tax Practice focuses on the tax planning needs of individuals who split their time each year between California and one or more other states or countries. It also extends to individuals from other states and countries who have investments here (including seasonal residences or rental properties) and/or who may operate part of a multi-national or multi-state business in or from California.

Defending nonresidents who receive an FTB Form 4600 inquiry letter questioning their residency status, asking them to file a California income tax return or noticing them for a “residency tax audits” is a significant part of our California Cross-Border Tax Practice. To help them avoid such experiences, we counsel our cross-border clients concerning tax-efficient structuring of their cross-border lifestyle, minimizing gratuitous disclosure of sensitive personal financial information to the FTB and, where needed, restructuring ownership of assets and income to avoid creating income California can tax. This planning includes tax-efficient structuring (or restructuring) of vacation home and rental property ownership to avoid individual income tax, nonresident withholding tax and gratuitous information disclosure to the FTB on a later sale, as well as California probate.

Our California cross-border tax practice extends to individuals who are able to live a “nomadic” lifestyle without a home base and to “mixed-residence” couples who wish to avoid California income tax for the nonresident spouse. We also assist non-resident investors who own or wish to purchase California rental property or who own interests in entities doing business in California.

For our clients who wish to become California tax residents, we develop “pre-residence” tax plans to help them avoid paying California tax on pre-exisiting income streams or accrued gains, and to plan for a later departure from California in the most tax efficient manner possible. For those who wish to cease being California tax residents, we develop “departure” tax plans (i.e., to effectively change residence and domicile and cease paying California income taxes) as efficiently as possible. Finally, we apply our decades of California tax experience to defend our clients who become caught up in any kind of California income tax audit or who wish to challenge tax assessments resulting from such audits before the California Office of Tax Appeals.

Finally, we assist our business clients with all aspects of business start-up, operations and sale, including entity selection and structuring (or restructuring) of entities doing business in California or with California customers. We also assist with drafting intercompany and third-party agreements to make the business operational, employment contracts, and joint venture or “buy-sell” agreements for investments involving multiple parties.

Whether you are a seasonal visitor, cross-border investor or business operator, our California Cross-Border Tax Practice can help you to minimize your exposure to California taxation. We serve locations all over California, including the desert communities of Palm Springs, Palm Desert, Rancho Mirage, La Quinta, Cathedral City and Indio. We welcome further inquiries you may have concerning your specific situation. Feel free to call us at (760) 578-5093, contact us via email at Brent@LanceCrossborder.com or by using our online contact form. We will respond to all relevant inquiries without any obligation.