I once had a boss who, even though he was not working in Florida, would frequently fly to Florida for just the weekend or stay for extended periods at his residence there in order to be able to claim Florida as his principal residence for tax purposes.
Also, I believe he resigned because he was expecting a large amount of capital gains not long after his resignation.
So this leads to my question: what are common, legitimate strategies people use to minimize the impact of large, realized capital gains within a given year?
- claim a principal residence in a state with no state taxes?
- reduce the amount of normal W-2/1099 income, since those sources of income increase the amount of capital gains tax and thereby reduce the value of normal income? (Or so it seems to me, running hypothetical numbers.)
Please note: this question is not about finding a state to go to with no taxes; that was just an example. This question is about common strategies, if any people use to reduce the impact of a large, realized capital gain.