Move to a tax free state to realize gains
I have $2.5M in unrealized long-term capital gains. I'm predicting it might be $10M next year when I want to cash out.
I live in NJ, where all types of income are taxed up to 10.75%, and losses don't offset gains in subsequent years. My NJ tax bill could be $1M.
I'm considering moving to FL before selling to avoid state tax. I have no ties in NJ other than my driver's license and car registration. I believe all I'd need to do is rent a place in Florida and update my driver's license, car registration, and update my bank account address.
Do you think this is a good idea? Is there anything that I'm missing?
UPDATE: Checked with my wife again, and she doesn't want to move now. When I mentioned it previously, she was open to the idea. So we'll be staying in NJ for the foreseeable future, and I'll just have to pay the tax. Maybe in a few years we will move and we can do it earlier the right way.