So I'm thinking of moving to Vegas... help? (some kinda-tax stuff)

[TheMetetron]

Background:

I make at least $150,000 per year as a professional poker player (at least $100k/yr) and casino/poker affiliate (at least $50k/yr). It is quite possible that my true yearly earn is $50-100k more than this, but this is the minimum level I am absolutely sure of.

I currently live in San Jose, CA.

My lease expires in July 2006 and I intend to move somewhere else at that time. I have one half of a two bedroom apartment, that costs $550/mo for my share.

The other option is moving to SoCal... likely Santa Monica, Westwood, Manhattan Beach, West LA, or something similiar.

If I move to LA, I will move in July. If I move to Vegas, I will move in January.... because:


Am I correct in my understanding that Nevada has no income tax and that the California income tax is 9% of your income for the year as reported on your federal taxes? This would seem to be a big incentive for me to move to Vegas, and do so at the beginning of the tax year. What happens if I move part way through the year as far as state taxes go?

Am I going to be bored out of my mind in Vegas? Are there good concert/show venues besides the flashy strip stuff? What is there to do out there? My experience outside of the strip consists of driving bugstud home to his place in Henderson. One of the reasons I hate San Jose is a lack of stuff to do, though I'd be willing to accept at least a comparable level of crap to do in a Vegas move.

What can I get in Vegas apartment-wise? Either a really nice 1 or 2 bedroom would be good. I'd like to be in an upper-middle class type of neighborhood, but middle-class wouldn't be undoable, as that's the area I live in now. Probably in Henderson I'm guessing?? Any other areas? A really big incentive to a 2 bedroom would be having a separate office and bedroom. One room for poker, one room for sex. It'd be great.

I am looking to buy a house in 5 years or so (probably not in Vegas), but I figure a few years of no state income tax would be an awesome way to help finance this little endeavor. Also, LA being 3 1/2 to 4 hours away is awesome as weekend trips there wouldn't be that hard at all.

I am also considering going back to school if I move there (I probably have a year at a JC first to make sure all my GE crap is knocked out)... I assume there is somewhere to do this? I wouldn't be opposed to a UNLV undergrad degree... assuming they have Economics?

Oh, and weather... how bad does it get? I figure summer will be one AC (house) to another (car) with the ocassional dip at the pool. Winters are... cold, but not terrible? I know spring/fall are nice.

Ummm, that's about all I have right now. Taxes aren't the main reason for moving to Vegas, but it turning out to be a huge incentive if I have everything right. I can definitely use an extra $15k a year in my pocket.


Thoughts?

[okayplayer]

I am actually in a very similar situation. I live in the Bay Area, and play poker for a living, and am trying to decide b/n staying in the Bay, moving to LA (near the beach) or moving to Vegas. I would buy a house though (and I think you should do same with your income, esp. if you move to Vegas). I posted a poll and thread in General a while back, but didn't get any real advice.

[admiralfluff]

I think you should definitely look for a place to buy if you move to Vegas. I perosnally would not like to live there. It's just like Disney Land.

[TheMetetron]

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I think you should definitely look for a place to buy if you move to Vegas. I perosnally would not like to live there. It's just like Disney Land.

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I would live in Disneyland.


Also, I would buy, but I can't see myself living in Vegas for the rest of my life. That, and the buyer's market is pretty crappy no matter where you move.

I'd much rather wait 4-5 years and rent while saving up a substantial downpayment. Then decide where I want to settle for 10+ years and buy there. I highly doubt this will be Las Vegas, but it seems good for a 21 year old to live and have some fun.

[TheMetetron]

[ QUOTE ]
I am actually in a very similar situation. I live in the Bay Area, and play poker for a living, and am trying to decide b/n staying in the Bay, moving to LA (near the beach) or moving to Vegas. I would buy a house though (and I think you should do same with your income, esp. if you move to Vegas). I posted a poll and thread in General a while back, but didn't get any real advice.

[/ QUOTE ]

Market sucks, see above, not interested in buying at the current moment.

Also, you should definitely move out of the Bay Area... LA is my preferred place to live, but it's so ridiculously expensive that I can't do it right now without wasting a ton of money on really high rent for a really crappy place.

It should be noted, that prior to this year, I made just about nothing. So my actual savings is only going to be about $25-50,000 after I pay my taxes this year. California 9.3% state income tax was not something I thought much about until recently, and didn't really save accordingly.

So a few years in a no state income tax state and low rent would a decent way to save up some good money to buy a home.

[MrMoo]

Before I respond it's important to note that my responses come from me also looking into moving to Vegas. I don't actually live there.

Correct, there is no state income tax in Vegas. I've also heard that either there is no sales tax, or it's very low compared to other states.

As for taxes, when I moved from CA to MA I was required to pay CA state income taxes based on the amount of time I was there. So for example if I was there for half a year. I'd have to pay taxes on half of my earned income based on CA's tax structure. And half my income based on MA's tax structure. I'd assume a move to Vegas would be similar. Any CPA would be easily able to help you with this.

I don't really have much information about schooling. You might consider that some colleges are more expensive for non-residents. You might be required to live in the area for a couple of years before you get the cheaper rate.

Rent is fairly cheap compared to SoCal and I'm assuming NorCal as well. Like any place it depends on your needs. There are low end areas and there are nicer areas. I've personally been browsing in the NorthWest area of Vegas which is nice and pretty new. You can rent a full blown house there for around 1150. Lot's of apartments in the area too which run around 800-900 for a 2 bedroom. These are all around 20 minutes from the strip.

Can't really tell you too much about the weather that you probably don't already know.

Good luck.

[vegasbob]

Since there are no income taxes actually the sales tax is rather high at 7.75 %. I live in vegas and own a townhouse and the price of your mortgage would be about the same as an apartment and I dont think the prices would be dropping any time soon. Let me know if I can be any help to you.

[pokerrookie]

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I am actually in a very similar situation. I live in the Bay Area, and play poker for a living, and am trying to decide b/n staying in the Bay, moving to LA (near the beach) or moving to Vegas. I would buy a house though (and I think you should do same with your income, esp. if you move to Vegas). I posted a poll and thread in General a while back, but didn't get any real advice.

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Market sucks, see above, not interested in buying at the current moment.

Also, you should definitely move out of the Bay Area... LA is my preferred place to live, but it's so ridiculously expensive that I can't do it right now without wasting a ton of money on really high rent for a really crappy place.

It should be noted, that prior to this year, I made just about nothing. So my actual savings is only going to be about $25-50,000 after I pay my taxes this year. California 9.3% state income tax was not something I thought much about until recently, and didn't really save accordingly.

So a few years in a no state income tax state and low rent would a decent way to save up some good money to buy a home.

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I know you don't WANT to buy. Sometimes I don't WANT to push very small edges at the poker table, but I do. Buying a house even in a slow market is major +EV compared to renting. You are throwing money away by renting, bottom line. If you pay 1000/month, that is 12,000 for 5 years, or 60K down the drain. Maybe you save money for a down payment five years from now, maybe not. If you buy, get a loan with no down payment, your mortgage payment will be slightly higher than 1K/month, if not equal. At the end of the 5 years, you have equity in the house, and the money you will save for the next downpayment. As long as you live in your home for two years, you avoid short term capital gains. If I were young like you, I would buy as much house as I could possibly afford, and rent a room or two to cover the majority of the mortgage payment each month. You live effectively for free, and you get all the savings that a house gives you. I am no financial advisor, so you should study these things on your own, but I find it hard to believe that someone like yourself is willing to take the risk of casinowhoring, affilating for sites, etc... would not be willing to buy a house to maximize your financial well-being. Making 100K a year and not buying a house is the equivalent of folding pocket aces on this hand so that they will pay off more on the next. Just dumb!

[stoxtrader]

[ QUOTE ]
I know you don't WANT to buy. Sometimes I don't WANT to push very small edges at the poker table, but I do. Buying a house even in a slow market is major +EV compared to renting. You are throwing money away by renting, bottom line. If you pay 1000/month, that is 12,000 for 5 years, or 60K down the drain. Maybe you save money for a down payment five years from now, maybe not. If you buy, get a loan with no down payment, your mortgage payment will be slightly higher than 1K/month, if not equal. At the end of the 5 years, you have equity in the house, and the money you will save for the next downpayment. As long as you live in your home for two years, you avoid short term capital gains. If I were young like you, I would buy as much house as I could possibly afford, and rent a room or two to cover the majority of the mortgage payment each month. You live effectively for free, and you get all the savings that a house gives you. I am no financial advisor, so you should study these things on your own, but I find it hard to believe that someone like yourself is willing to take the risk of casinowhoring, affilating for sites, etc... would not be willing to buy a house to maximize your financial well-being. Making 100K a year and not buying a house is the equivalent of folding pocket aces on this hand so that they will pay off more on the next. Just dumb!


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I disagree, there are a number of costs associated with buying/owning that are cheaper/nonexistant when renting. A general rule of thumb is that 2-3 years is a decent occupancy breakeven rate for owning vs renting. This also has to be weighed against your opinion on interest rates and the specific real estate and rental market in the area you are looking at.

for the OPs situation, it is my opinion that renting is much better, and it sounds like he thinks so as well.

[Guthrie]

Buy a luxury RV and establish Nevada as your primary residence, then spend all the time you want in LA, or anywhere else you damn well please. Lots of advantages to being young, single, and able to make a good living anywhere there's an internet connection.