Apart from the obvious benefits of moving to Las Vegas, such as great weather, golf, and world-class entertainment, Nevada tax laws are certainly an attractive aspect of living in Nevada. Nevada is one of a handful of states that do not require corporate income tax, individual income tax, nor sales tax, making it an ideal place to own property and do business.
According to the Private Bank by Nevada State Bank, a household with an annual income of just over $60,000 can expect to save an estimated $7,000 each year in total taxes paid compared to California.
Such tax benefits can be attributed to the Nevada gaming industry. Hotel-casino companies continue to hold the top spots as Nevada’s largest property taxpayers.
In 2018, tax revenues within the state’s General Fund reached nearly $3.8 billion. Of that, the hospitality industry accounted for nearly $1.5 billion, (38.9 percent of the total). When non-tax revenues within the state General Fund are added to tax revenues, the hospitality industry represented 37.5 percent of revenues. Gaming taxes were responsible for generating the majority of the industry-generated taxes with $711.3 million, which was 47.3 percent of total General Fund revenue generated by the industry. The next largest contributor by the hotel-casino industry was sales and use tax, which generated $389.1 million during the fiscal year, accounting for 25.9 percent of total General Fund revenue generated by the industry.
Main Nevada Tax Takeaways:
- No personal income tax
- No corporate income tax
- No gross receipts tax
- No franchise tax
- No inventory tax
- No tax on issuance of corporate shares
- No requirements of shareholders & directors to live in Nevada
- No tax on sale or transfer of shares which keeps more cash in your pocket
- No succession or inheritance with IRS
- No sharing of information with IRS
- Simple annual requirements
- Financial protection for corporate Directors and Officers
- No initial or minimum capital requirements
- Anonymity of owners gives you complete and total privacy
- Low property taxes
Such a business friendly environment gives you the rare opportunity to focus on growing your business and reaping the benefits rather than having to devote a large amount of time and money in order to comply with state laws. It also makes it so that you don’t feel as though you’re paying rent on the land that you “own”.
However, to take advantage of the income tax savings, you must make Nevada your primary home. You have to pass a “close connection test,” which determines whether or not you have social and business connections in the state, among a few other verifications. You have to be heavily involved in your community and can’t just drop in now and then for a business conference and a weekend of fun.
Owning real estate in the state of Nevada is a key factor when considering these tax advantages. So, if you don’t like to pay too much in taxes and love all that Las Vegas has to offer, feel free to take a look at the latest available homes for sale in Las Vegas by clicking HERE or give Marisa a call at 702-410-6555.