How do you identify: WFH or digital nomad?
Also, guest contributor John Dunbar on the benefits of working from two homes
There’s a distinct difference. A digital nomad bounces from place to place either on a local level—coffee shops, libraries, etc.—or international. Working from home means just that—you work from your home. Chances are that home remains a constant, like yours truly. Unless there’s a special circumstance, like a vacation where you know you will have to work part of the time.
Then there’s Remote Year. It’s a program that enables you to live around the world for a certain amount of time—one month, four months or a year. You pay them a certain fee and they provide the home and shared workspace. Check it out.
Two Homes in Two States
Then there’s working from homes. That’s right, multiple homes. John Dunbar, a real estate agent from North Carolina and the creator of Housing Secrets, is our special guest contributor. He’s here to share the many benefits of working remotely from two residences—and some of the things you need to look out for.
Two Homes in Two States, Living the Best of Both Worlds
By John Dunbar, Housing Secrets
In today’s tech-dominated workplace, it’s becoming more and more common for employees, freelancers, business owners, and of course, retirees to live in more than one place throughout the year. Whether you own homes in two states or rent in one or both, there are some advantages you should be aware of in having two places to call home.
Taxes
If you are a resident of one state and work in another, you may be able to file taxes in both states. You can only do this if the states have an agreement, or "reciprocity," for income taxes. Reciprocity is an agreement between two states that allows residents of one state to file income tax returns in both states. It also allows residents from one state to work in the other without paying income taxes there. The agreements usually cover only income tax and not other tax types, like sales tax or property tax.
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Two Homes in Two States, Living the Best of Both Worlds
In today’s tech-dominated workplace, it’s becoming more and more common for employees, freelancers, business owners, and of course, retirees to live in more than one place throughout the year. Whether you own homes in two states or rent in one or both, there are some advantages you should be aware of in having two places to call home.
Taxes
If you are a resident of one state and work in another, you may be able to file taxes in both states. You can only do this if the states have an agreement, or "reciprocity," for income taxes. Reciprocity is an agreement between two states that allows residents of one state to file income tax returns in both states. It also allows residents from one state to work in the other without paying income taxes there. The agreements usually cover only income tax and not other tax types, like sales tax or property tax.
Vehicle Insurance and Registration
You will need to consider the rules for both states and the procedures for registering in each state. The process can be different depending on whether or not the vehicle was purchased from a dealer or from an individual, if the vehicle was financed, and what type of registration is required by each state.
If your car travels with you between houses, you'll only need one auto insurance policy. This is commonly called the "snowbird exception" because it usually impacts "snowbirds" who spend the winter months in a warm-weather state.
Buying or Renting
Moving between states can leave a lot up in the air, including where you’ll stay. Short term rentals can get expensive. Plus, you’ll always feel like you’re traveling instead of home. Buying a home in one state while renting in the other is another popular option, which comes with its own set of pros and cons.
Another option is to have a primary residence in one state and a vacation home in the other. Buying a vacation home is a little more expensive than buying a primary residence, but it can be done with the right planning. If a friend or coworker travels to the same state, you could go in on the purchase together or they could rent from you when needed. Or if the home will be in a destination location, you can rent it out when you aren’t there.
If you choose to rent out that property, you’ll need to work with a property management company that can take care of things when you’re away. It’s also best to establish a limited liability company (LLC) to protect your investment and personal assets. They also come with tax benefits, which can be very handy when it comes to upkeep costs.
Health Insurance
If you choose to buy a plan in one state and keep it all year long, you might only have coverage for emergency care when you're living in the second state. If your insurance plan is limited to providers within the state (which is true of most individual market plans), you'll have to return to your first home in order to receive in-network medical care. Or you can opt to buy a new health insurance plan each time you move from one house to another. This would ensure that you will always be in your provider network.
Moving With Your Pet
Moving can be stressful for pets, but sometimes options like CBD therapy can help keep them calm. Your pet will, of course, need to be up to date on all their immunizations. Their rabies vaccine in one state will be good in both.
It’s crucial you have pet insurance for any illness or accident that could arise, but you may be surprised that the cost varies from state to state. For instance, if you need to find pet insurance, rates will vary depending on the type of pet, location, and the type of coverage you want.
Cost of Living Differences
You probably know that home costs vary greatly depending on which state you live in. For instance, an average 3 bedroom, 2 bath home in Los Angeles will cost upwards of $800,000, while that same home in Dallas, Texas, might cost less than half that at $460,000. But there are other costs of living differences you might not be aware of.
Food: Grocery prices in Oregon average $443. per person, per month. while in Alabama is $590.
Car Insurance: A six-month comprehensive auto policy in Georgia will cost you $1,200, and in neighboring Tennessee, it is nearly half that $700.
Energy: A monthly energy bill can vary, too. In Utah it will cost a little under $90 a month, while down in Louisiana, your bill will be significantly higher at around $166.
Pet Ownership: The least expensive place to own a dog is North Dakota, with costs totaling only $1,685 per year. New York is the most expensive place in the country to own a dog, totaling $2,010 every year.
Self Storage: The monthly cost for a 5x5 storage unit in El Centro is about $56 per month, while in Wilmington, Delaware, it can run you $83.
Enjoy the Best of Both Worlds
Living and working in two states can mean twice the friends, twice the amenities, and twice the job and business opportunities. As long as you understand the rules and take precautions as needed, it can be a great lifestyle for you, your family, and even your pet!