May 6th, 2013

Conrunner Kevin

Doing the Math

I've been asked why I'm doing this hotel-stay thing instead of renting a "cheap apartment." Well, to start with, "cheap apartment" and "Bay Area" are pretty much mutually exclusive terms. (Go search Craigslist if you are not familiar with Bay Area housing costs.) Second, I'm now only in the Bay Area about two weeks (between ten and twelve nights) per month, not including special events like BayCon. My previous apartment cost me about $33/day. If I can continue to get the $41 (net after taxes) room rate I'm currently getting, as long as I spend no more than 24 nights per month in the Bay Area, I'm money ahead. Finally, by no longer spending the majority of my time in California, I've established residency in Nevada, and if I'm reading the rules correctly, I now only have to pay income tax for the days I'm actually working in California. For now, I'm continuing to have full resident income taxes withheld because I was legally resident in the state until the end of April of this year and need to have an actual 540NR California non-resident/part-year-resident tax return behind me to figure out the real impact of this, but it seems like it should cut my California income tax in half in the long run.

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