Thanks to Nevada’s lack of state personal, business or corporate income tax, Incline Village’s lakefront homeowners now include billionaires such as Oracle’s Larry Ellison, PeopleSoft’s David Duffield and Zazove’s Gene Pretti.
Other affluent tech and financial executives — many of whom hail from California — are establishing residency in Incline Village before a liquidation event. This way, they can avoid tax liability while enjoying outdoor activities year-round.
“There are lots of great reasons to move to Nevada and Incline Village in particular,” says Trinkie Watson, CIPS, CLHMS, a real estate broker who specializes in the Lake Tahoe region. “It’s a thriving community full of year-round residents, many of whom work from home thanks to technology.”
When it comes to lifestyle, Watson notes the “seasonal weather that includes snow in winter/spring for skiing and snowboarding, summer with lake and water activities, hiking, biking, golf and tennis, and a beautiful fall with changing colors. And for frequent travelers, the Reno-Tahoe International Airport is less than an hour away.”
But clearly, the financial advantages have been the catalyst for the increased interest in “Income Village,” as some call it. Because Nevada has unique laws protecting corporations, Incline Village has gained a reputation as a tax haven — one in which investors can register shell corporations and claim residency to avoid tax liability.
“As long as income isn’t derived from [other states like] California, they will not have any personal state income tax to pay,” says Watson. She also points to the ability of many people to “sell high” in the Golden State and get more value for a new home purchase in Nevada (which, ironically, is known as the Silver State).
Also contributing to this newfound interest in areas like Incline Village is the growth occurring a short drive away in the Reno-Sparks region. That area has been transitioning from a gambling economy to a manufacturing economy thanks to about 100 new companies. New additions coming soon include Tesla’s battery factory in Sparks and Switch — the company that developed the Supernap, which is the world’s largest data center ecosystem — is constructing a huge campus nearby.
Both the old and new residents of Incline Village see this situation as a “win-win” — the town gets cache from its new billionaire neighbors and enjoys growth, while these new residents enjoy the ability to avoid paying big tax bills.
Courtesy of “Luxury Insights.”