Cabin/Cottage

Tax Information For Nevada

Nevada is one of the few remaining states that does not impose an income tax on its residents,
businesses, or corporations.

Nevada has no personal income taxes, no corporate income taxes, no inheritance taxes, no franchise taxes,
no inventory taxes, no interstate commerce taxes, no sales taxes on services.

In the rural Pahrump Valley of Nye County rates for vehicle insurance for automobiles, trucks, motor homes,
trailers, aircraft, and boats are amongst the lowest in the nation.

Because of its rural nature and because the community is supported in part by taxes on casinos, vehicle
registration is extremely low and smog check requirements are non-existent.

Case Study ... Robert and Alice

Robert and Alice lived and worked in Southern California for the last 30 years or so. Robert was a successful engineer with one of the largest structural steel firms on the west coast and Alice had worked herself up to department supervisor of a large telephone and communications company when they retired.

Over the years, they had built up a considerable equity in their home and had invested in some solid blue chip stocks. - Each had their own automobile and by retirement time Robert had finished paying off his pride and joy - a 1964 Piper Twin Comanche airplane.

Both Robert and Alice were eligible for, and received, hefty retirement benefit packages from their respective former employers. - With their monthly retirement income and their stock dividends they felt that they were set for life.

Unfortunately, at tax time the first year into their retirement, they found that the state income tax on their retirement benefits and stock dividends was outrageous! - They had lost over 20% of their income! - To make matters worse, the cost of insurance and registration on their vehicles and Robert's airplane skyrocketed.

The Solution ... Robert and Alice drove to Southern Nevada and purchased a cottage and property for less than $50,000. This gave them a physical street address and residence.

Robert and Alice then registered to vote, got new Nevada driver's licenses and declared their Nevada home as their primary residence.

When they registered and insured their vehicles in Nevada they were dumbfounded at the low cost.

Even though Robert and Alice still enjoy all the benefits of their California home, for tax purposes it is considered a "second" or "vacation" home as Nevada is now their "primary" residence.

Robert and Alice now pay no state income tax as Nevada has no income tax. - The savings on insurance, registration, and income tax during the first year pretty well paid for their new cottage and land!