Domicile

AAA

DEFINITION of 'Domicile'

One's primary residence for tax purposes. A domicile is established via a driver's license, voter registration and as being the address of record for credit cards and other bills. Although most people do, it is not necessary that one live in their listed domicile.

INVESTOPEDIA EXPLAINS 'Domicile'

Because a domicile is established primarily for tax purposes, it is somewhat controversial. This is due to the fact that many foreign workers establish residences elsewhere to avoid paying taxes. In 2012, Facebook co-founder Eduardo Saverin drew just such suspicion when he renounced his United States citizenship immediately prior to Facebook's IPO. Saverin established a home in Singapore that has no capital gains tax. The long-term capital gains tax for Americans with incomes equivalent to Saverin's is a minimum of 15%.

RELATED TERMS
  1. IRS Publication 527 - Residential ...

    A document published by the Internal Revenue Service (IRS) that ...
  2. Conveyance Tax

    A tax imposed on the transfer of real property at the state or ...
  3. Principal Residence

    The primary location that a person inhabits. It doesn't matter ...
  4. Corporation

    A legal entity that is separate and distinct from its owners. ...
  5. Resident Alien

    A foreigner who is a permanent resident of the country in which ...
  6. Non-Resident

    An individual who mainly resides in one region or jurisdiction ...
Related Articles
  1. Taxes

    Before You Visit Your Tax Preparer: Do This

    The earlier you start preparing your tax records and documents, the more likely you are to have a smooth tax return experience โ€“ and all the tax benefits you're due.
  2. Options & Futures

    What Is Your Risk Tolerance?

    Forget the cliches and uncover how much volatility you can really stand.
  3. Retirement

    Avoid An Audit: 6 "Red Flags" You Should Know

    Don't make yourself a target - steer clear of these attention-grabbing tax-filing practices.
  4. Taxes

    Making Sense Of The Tax Code

    If tax rules and regulations are Greek to you, read on to learn how to decipher them.
  5. Retirement

    Cut Your Tax Bill

    Paying your bills early or giving an extra donation now can help you come tax time.
  6. Investing

    Deferred Tax Liability

    Deferred tax liability is a tax that has been assessed or is due for the current period, but has not yet been paid. The deferral arises because of timing differences between the accrual of the ...
  7. Taxes

    Taxes: H&R Block Vs. TurboTax Vs. Jackson Hewitt

    There are more and more tax services to help ease the pain of filing income taxes. Here's our take on three of the biggest.
  8. Taxes

    3 Last-Minute Moves To Lower Your 2014 Tax Bill

    The 2014 tax year may be over, but it's still not too late to find some last-minute deductions. Act now!
  9. Taxes

    5 Smart Uses For Your Tax Refund

    Consider using the bulk of your refund to take care of long-term needs, like saving for retirement or college.
  10. Taxes

    Top 10 Tax Filing Mistakes โ€“ And How To Avoid Them

    What are the worst tax filing mistakes people make? Tax expert and attorney Barbara E. Weltman points out 10 common ones โ€“ and how to steer clear of them.

You May Also Like

Hot Definitions
  1. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  2. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  3. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  4. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  5. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  6. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
Trading Center