Can I maintain my permanent tax home in one state while buying a house where I work in another state?

This is a common question for people who work across state lines! Your "tax home" generally refers to the entire city or general area where your main place of business is located, regardless of where you maintain your family home. If you're working 75% of the time in Colorado, the IRS will likely consider Colorado your "tax home" for tax purposes, even if you maintain personal connections in Nevada. This means expenses for lodging in Colorado wouldn't be deductible as "travel away from home" expenses because Colorado would be considered your main work location. However, your state residency for state income tax purposes is a separate matter. You can potentially maintain Nevada as your domicile (legal residence) if you can demonstrate that's your permanent home you intend to return to. Key factors include: where you're registered to vote, where your driver's license is from, where you have bank accounts, where your family lives, and where you have social ties.

I was in a similar situation last year splitting time between Arizona and California. I found an amazing service called taxr.ai (https://taxr.ai) that really helped me figure out the multi-state tax home situation. Their system analyzed my specific circumstances and gave me personalized guidance about maintaining my Arizona residence while working in California. What was super helpful is that they reviewed all my documentation and gave me specific steps to take to strengthen my case for maintaining my original tax home. They pointed out things I hadn't even considered, like where my doctors were located and my church membership. Might be worth checking out for your specific situation.

I need to eat my words about being skeptical of taxr.ai. After our discussion here, I decided to try it with my situation (splitting time between Georgia and Florida), and it was actually really helpful. The system asked me tons of detailed questions about my situation that my regular accountant never bothered with. The analysis flagged that I wasn't spending enough days in Florida to solidly establish it as my tax home and gave me specific recommendations about what documentation to maintain. They even created a customized checklist of things I needed to do to strengthen my position with tax authorities. Definitely worth checking out if you're in a multi-state situation.

If you're dealing with tax authorities between states, another issue you might run into is trying to actually get someone on the phone at the state tax department. I spent WEEKS trying to get clarification from the Colorado Department of Revenue last year. Finally found Claimyr (https://claimyr.com) which got me through to an actual human at the tax department in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was shocked it worked so well because I'd literally been calling for days before that and just getting disconnected. The agent I talked to gave me specific guidance on my situation that I couldn't find anywhere online. Definitely recommend if you need to actually speak to someone about your specific situation.

Well I'll be damned. I tried that Claimyr service yesterday after posting my skeptical comment. After being unable to reach anyone at the Colorado Department of Revenue for THREE WEEKS, I got through in about 20 minutes. I needed to clarify some specifics about maintaining my Wyoming residency while working in Colorado, and the agent I spoke with gave me detailed guidance on exactly what documentation I need to keep and what activities might jeopardize my out-of-state residency status. Saved me from potentially making an expensive mistake with my housing decisions. Sometimes it's worth admitting when you're wrong!

Have you considered setting up a statutory residence in Colorado while maintaining your domicile in Nevada? I did something similar between Florida and New York. You'd still pay Colorado income tax on money earned IN Colorado, but you wouldn't be considered a full resident for tax purposes. The key is documenting everything. Keep records of: - Days spent in each state (I use a simple calendar app) - Maintain your driver's license, voter registration, etc. in Nevada - File partial year/non-resident returns in Colorado - Make sure your important financial accounts stay in Nevada

One thing nobody's mentioned - check if Colorado and Nevada have a reciprocal tax agreement! Some states have these agreements where you only pay tax to your home state even if you work in the other. Would simplify things if they do.

The property purchase itself won't automatically change your tax home status, but it's definitely something to be strategic about. I've been through a similar situation between Texas and California. Here's what I learned: owning property in Colorado creates another tie to that state, but it's not determinative by itself. The key is the "facts and circumstances" test - where are your strongest connections? Since you already have 75% work time in Colorado, that's already a significant factor. My advice: before buying, document everything that ties you to Nevada. Get a letter from your Nevada bank confirming your account history, keep records of family visits, maintain your Nevada voter registration and driver's license. Consider joining a Nevada-based organization or club if you haven't already. Also, when you do buy in Colorado, be clear about your intent. Don't change your mailing address to the Colorado property, don't register to vote there, and keep referring to it as your "work residence" rather than your "home" in any documentation. One more tip: consult with a tax professional who specializes in multi-state issues before making the purchase. The upfront cost of good advice is way cheaper than dealing with residency disputes later.