State of Confusion

The Taxman Cometh

On Monday, super sharpie contributor Meto walked us through some of the finer points of the Florida Homestead exemption – the law that may protect ownership of Joe and Victor’s Miami Shores home in the event they come out on the losing end of Kathy Wone’s $20 million wrongful death civil suit.

He continues here raising a couple of important questions:

Which state, exactly, are Joe Price and Victor claiming domicile: DC or Florida?

Domicile differs from residence apparently.

Assuming they are still DC, why are they jointly claiming a $50,000 property tax exemption as if they were Floridians?

Immediately pressing, how difficult will it be for Price and Zaborsky to pony up the $9,000 due to the taxman on November 30?  Ouch.

And a last, very important question:  Who’s first in line?  Bernie  Grimm and Tom Connolly or the Miami-Dade Tax Collector?

Curiously, just over a year ago on November 13, 2008, Price sent out that fundraising letter for his legal defense.  Were those funds meant to keep Bernie and Tom on retainer, or were they destined to pay off the 2008 Florida tax assessment?  Odd timing it seems.

Again, our thanks to Meto for his time and effort in helping to untangle one of the many loose threads we’ve come across in the last year.

He assures us that no billable hours were harmed in the writing of these posts.

Florida Real Estate Law 101 continues after the jump.

I use an example based solely on Florida public filings.  Assume that on June 1, 2008 , Price and Zaborsky purchased the Florida home.

The first limitation provision runs two years not from the purchase of the property, but from Florida established domicile.  The second provision limiting the exemption to $136,875 adjusted for inflation runs until May 31, 2011.   The third provision would run on May 31, 2018.

Can one prove that a gay couple who had professed a desire to live in Florida, purchased property in Fort Lauderdale on June 1, 2008, long before the civil action was filed, for the purpose of avoiding their creditors?

This issue will certainly be fought over.

That brings us, finally, to a question of domicile.  One can only have one domicile at a time, but multiple residences.

Domicile under D.C. law is both a state of mind (intent of where you permanently reside) and must be backed up by physical presence.  See District of Columbia v. Woods, 465 A.2d 385, 387 (1983) (holding that both prongs must be met and that burden is on person claiming their domicile has changed).

This is a facts and circumstances test in which intention, presence, driver’s licenses, voting records, tax returns, checking accounts and everything becomes relevant.

I had no inside baseball knowledge as to whether any one or more of the three has made a claim of domicile in Florida until I went to the June 29 posting and Michael’s link to the public records.  I wondered whether perhaps that was what Dylan was doing in Florida.   Ah, but wait, all three have made a big deal in getting released pretrial on their Washington, D.C. connections.

And now they are living with Victor’s Aunt in McLean, Virginia.  Based upon what we think we know, I didn’t see how the defendants could presently meet the first prong of the test – 2 years domiciled in Florida.  It didn’t appear that the clock was even ticking.

But in fact something is ticking because as the June 29 posters noted Florida’s public information suggests that Joe and Victor may be already claiming domicile in Florida as of June 2008.  Florida, like many other jurisdictions including DC, provide a valuable property tax reduction for permanent residents of Florida called (confusing of course) the property tax Homestead Exemption, providing up to $50,000 of the property’s value.

In order to take the property tax exemption one is supposed to provide Florida with, among other things, proof you are living in the property, a Florida driver’s license, and a Declaration of Domicile or Voter’s Registration.  The public records available on-line appear to show that the Homestead Exemption has been claimed and granted by Florida as to the property owned by Joe and Victor.  [See June 29 link].  As other have asked, does this mean they have submitted documentation and if so, what does it show?

Which story is true – Joe and Victor are long-time D.C. residents or they are since June 2008 permanent residents of Florida?  Can they both be true?  Was the move to Virginia part of the process to disassociate themselves from D.C. as domiciles?

Forgive me for taking this one step further, and this only becomes relevant if domicile for Joe and Victor is not already Florida as I now suspect they intend to claim.  If the three are convicted of the existing charges, I suspect this domicile question becomes irrelevant for obvious reasons.

The only way domicile becomes relevant (unless the defendants have established domicile in Florida already in which case May 31, 2010 becomes the magic date) is if the defendants (one or more of them who own real estate in Florida) are acquitted.

If they are acquitted, they move to Florida the next day and the 2-year clock starts ticking.  The civil suit has been stayed until the trial is over.  And the race to judgment on the civil case and an involuntary Bankruptcy Petition is on.

The D.C. court system is not notoriously fast – just the opposite, but the plaintiffs may not need to wait for an appeal because an appeal does not stay enforcement of judgments.  Covington is a great law firm and they will do everything they can to win that race but I would not bet on the outcome.

All of this leaves me with more questions than answers, and I am confident that that there are a lot more questions that others will have:

(1) There are $9,000 in property taxes due November 30, 2009 (not protected by homestead creditor protection) – who will pay and how?

(2) How could Joe and Victor claim Florida Domicile in mid-2008 when they lived and were employed in Washington, D.C.?

(3) What does this mean to the postponed civil case?

(4) Just why did all of this planning take place before any charges or civil suits were filed?  I think the last question may answer itself.

-posted by Craig

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Clio
Clio
14 years ago

Forgive my ignorance here, but the “dumb” question arises: are Joe and Victor allowed to reside in Florida, or do they have to stay close to DC for the court’s proceedings? Is there a mandate that they stay within 50 miles of Moultrie?

If there is no such mandate, why would one stay with Aunt Marcia long-term if one has (and is paying for) a house in Miami? If I was a member of the trouple, I would stay with Aunt Marcia during the weekends of the status hearings, but then leave for Miami and the odd jobs that it would offer.

CDinDC
CDinDC
14 years ago
Reply to  Clio

How would they pay for the mortgage? Unless they officially prostitute Dylan. Get him some go-go shorts and they’ll be all set.

She did it
14 years ago
Reply to  CDinDC

and just how much do you really expect the gang could charge for dylan these days? a little long in the tooth for go-go shorts and happy endings if you ask me. happy holiday – cd!

Clio
Clio
14 years ago
Reply to  She did it

SDI, Miami’s cosmopolitan audiences may be more exacting in reference to looks when it comes to rented companions than metro DC: still, there are an array of less exacting retirement communities that Dyl at a relatively young 40 could milk in southern Florida. Just a thought.

AnnaZed
AnnaZed
14 years ago

A second perusal of Joe’s begging letter:

“…We have no choice but to sell and liquidate every asset in order to pay this staggering sum as our very freedom hangs in the balance. Our parents are doing the same,sacrificing retirement savings and taking on unprecedented debt to aid us.”

What an audacious coal-fired liar that Joe is.

I wonder if any of the contributors to the trouple fund know of these property ownership arrangements. I wonder if any (or if even one) are reading this blog and having various crises of confidence not least being the always troubling perception of being financially manipulated and conned.

Clio
Clio
14 years ago

Forgive my ignorance here, but the “dumb” question arises: are Joe and Victor allowed to reside in Florida, or do they have to stay close to DC for the court’s proceedings? Is there a mandate that they stay within 50 miles of Moultrie?

If there is no such mandate, why would one stay with Aunt Marcia long-term if one has (and is paying for) a house in Miami? If I was a member of the trouple, I would stay with Aunt Marcia during the weekends of the status hearings, but then leave for Miami and the odd jobs that it would offer.

CDinDC
CDinDC
14 years ago
Reply to  Clio

How would they pay for the mortgage? Unless they officially prostitute Dylan. Get him some go-go shorts and they’ll be all set.

She did it
14 years ago
Reply to  CDinDC

and just how much do you really expect the gang could charge for dylan these days? a little long in the tooth for go-go shorts and happy endings if you ask me. happy holiday – cd!

Clio
Clio
14 years ago
Reply to  She did it

SDI, Miami’s cosmopolitan audiences may be more exacting in reference to looks when it comes to rented companions than metro DC: still, there are an array of less exacting retirement communities that Dyl at a relatively young 40 could milk in southern Florida. Just a thought.

Bea
Bea
14 years ago

Some relevant facts which go with this post (sorry, no time to ferret them out).

In the Defendants’ Motion for Pretrial Release, the following “facts” were put before the court:

“Though Ward relocated to Florida in October 2007—more than a year after the alleged
obstruction occurred—Ward has strong ties to the District. He will live and work here until this
matter is conclusively resolved.
***
In October 2007, Ward decided to explore the possibility of living and working in South
Florida. Accordingly he made arrangements to rent a room from friends already living there and
moved to Ft. Lauderdale, Florida. After moving he continued doing contract work with the
direct mail fundraising company and maintained his close network of friends and colleagues in
the District, traveling here frequently for visits.
On June 2, 2008—after extensive renovation work was completed to repair hundreds of
thousands of dollars of damage done to their home by the Metropolitan Police and almost two
years after Robert Wone’s death, Price and Zaborsky sold their home at 1509 Swann Street.
After selling the house they temporarily lived with Zaborsky’s aunt who owns a home in
McLean, Virginia where she has lived for more than thirty years. While living with Zaborsky’s
aunt, Price and Zaborsky searched for a residence to purchase in the District, planning to buy a
condo in the District and also in Miami, Florida, where they have regularly vacationed for more
than seven years and where Zaborsky regularly travels for work. After an extensive search, Price
and Zaborsky ultimately obtained a contract on a two-bedroom condominium in the District for
$725,000. They ultimately cancelled the contract based on their belief that the price was simply
too high and that the District’s real estate market was still overvalued unlike markets like
Southern, Florida where Price and Zaborsky realized they could obtain a much better buy.
Accordingly they decided to rent an apartment in the District and to take the proceeds from the
sale of their Swann Street home and invest them in a home in Miami. They eventually purchased
a home in Miami Shores, Florida on June 26, 2008, and leased an apartment for one year in the
District. See District Lease, attached at Exhibit A.

In July 2008, Ward moved to Price and Zaborsky’s Miami Shores home and began
paying them rent and managing the home. Price and Zaborsky continued to live and work in the
District, traveling to the Miami Shores home approximately once a month with family and
friends.
After the devastating news of Ward’s arrest and that charges against them were
imminent, Price and Zaborsky made plans to rent the Miami Shores home. Accordingly, in early
November they engaged a real estate agent to rent the home and on November 22, 2008, their
tenants signed a lease renting out the home for one year, beginning in December 2008. See
Miami Shores Lease, attached at Exhibit B.”
***
In a Legal Times article about the hearing in which Zaborsky and Price were trying to reduce pretrial restrictions:

“Superior Court officials have now released a transcript of what was said. According to the transcript, some of the bench discussion involved the government’s claims that Price and his partner, Victor Zaborsky, had planned to move to Florida. Prosecutor Glenn Kirschner told Epps that Price sold the Dupont Circle home where Wone was murdered and that Zaborsky had obtained a Florida drivers license.”

****
Interesting in the Pretrial Motion that ORIGINALLY the Government wanted $250K bond for Joe Price and $100K for Victor Zaborsky – though they reduced Joe’s to $100K (and then later dismissed the request). Still, what do they know which makes Joe “more expensive”???

CDinDC
CDinDC
14 years ago
Reply to  Bea

Thanks for compiling that info Bea.

Clio
Clio
14 years ago
Reply to  CDinDC

Wow, thanks, Bea.

How and why they thought that southern Florida’s housing market was not overvalued is beyond my comprehension!

So, trouple visits and stays in Florida may be going on, even as we type. The “tenant” may be a compliant satellite. And, the lease is up next month. So, doing their penance at Aunt Marcia’s may be a scam, too?

Why would a milk marketeer travel to Miami frequently? Did they regularly vacation in Miami — can anyone verify that? The only Swann entourage vacation about which I recall reading took place in Italy. At least, though, Dyl was paying Victor and Joe rent from July through October 2008.

Mike
Mike
14 years ago
Reply to  Clio

At the very least it explains Li’l Dyl’s crispy face in the recent photos. Maybe Aunt Marcia wasn’t even getting any gardening work out of her most shiftless squatter. Now I’ve got a visual of him lolling on the Florida sands with an umbrella drink…grrrrr.

AnnaZed
AnnaZed
14 years ago
Reply to  Mike

Like Kathleen Turner at the end of Bodyheat, arg!!!

Bea
Bea
14 years ago
Reply to  Bea

Bad taste to post to one’s post, but as for the last-listed fact, presumably (and I think I recall this) that Price/Zaborsky’s attorneys argued that the two gents had no plans to move to Florida, which could harm their later arguments (you know Price reads and approves everything before filing). I think it was stated that Zaborsky traveled there often for business and had gotten a Florida Driver’s License for that reason (which doesn’t make sense, really) but they had no plans to leave DC and were not flight risks.

Meto
Meto
14 years ago
Reply to  Bea

Bea and others:

There are I guess multiple potential explanations for what I see to be conflicting “facts”. Perhaps the most obvious is that any efforts to establish Florida Domicile in mid-2008 (assuming that was being attempted and I think the facts suggest yes) backfired in light of need to stay out of jail once the criminal charges were filed. Could it be that the criminal charges surprised any plan?

Another explanation is that notwithstanding the assertions in the criminal case regarding D.C. residence, that if things “work” out in the criminal trial, the claim could later be made that they really are domiciled in Florida for the civil case — that they only said that precisely to stay out of jail. It was all that pesky decision to charge them with conspiracy that made them do it.

I agree the Florida driver’s license assertion makes no sense unless it is to establish domicile. It just doesn’t wash.

Maybe I really am a Puritan, but (I know someone on here said “everybody does it”) in the face of the rental of the Florida property, there is no right to claim the Homestead Exemption (property tax). It isn’t a lot of money, but it is the principle of the thing. It is a telling point for me when judging other contested facts.

Respectfully,

Meto

Bea
Bea
14 years ago
Reply to  Meto

I agree, Meto, that having rented the Florida property (and thus changing its tax status so they cannot claim mortgage interest on their taxes, but instead ‘income’) they’ve screwed the pooch on any chance of claiming ‘homestead’. It was clear during the pretrial release flurry of documents that the “faxed” Florida lease plan was hatched at the last moment and sent in to keep them free to say they had no plans (or home) to leave DC.

Of course, I smile when I think of the luxury rental they got while this was going on and hope they at least lost their deposit as they came to realize they could only ‘afford’ Aunt Marcia’s basement.

It seems likely that the plan WAS to have a spot ready to go in Florida if/when the civil suit was filed but DRAT those criminal charges that made them say they weren’t flight risks!

Clio
Clio
14 years ago
Reply to  Bea

Wonderful analysis, Meto and Bea. I am thankful on this holiday eve for the sudden realization that Joe’s machinations to elude justice may have backfired, due to events beyond his control. History does have a way of messing up the best-laid plans: Florida, Florida, Florida, indeed!

Craig
Craig
14 years ago
Reply to  Clio

“Florida, Florida, Florida.” Pitch perfect as always Clio.

Thank you for giving this Washington hack his very first gift of the holiday season.

Clio
Clio
14 years ago
Reply to  Craig

Thanks, Craig.

In the following two pieces of electronic flotsam, you do see Dyl becoming a Floridian, during 2008, at least:
http://www.thaibodywork.com/thai_massage/therapist2/dylan_ward/

Three-hour outcalls: exhausting!

Then, he transferred to Florida “professionally” in July 2008:

http://www.amtaflorida.org/pdfs/Fall%20FL%20Journal%209.2.08.pdf

He’s listed as a July transfer to Florida on page 7 of this journal.

Anonymous in DC
Anonymous in DC
14 years ago
Reply to  Clio

Good find! Seems like Dyl has finally committed to a profession.

Clio
Clio
14 years ago

Now, that Mr. Ward has finally decided (in his late 30s) what he wants to be when he grows up, it would be great, from his lonely perspective, if Victor and Joe could only commit to him — for real and not just for the trial or for his daddy’s money.

Uncle Dylan — still a frontier territory applying for statehood to the Union?

Three-hour outcalls: how many masseurs do sessions for that long? Thai massages of that unusual duration must be Dyl’s special niche by which he could charge over $250 per session.

AnnaZed
AnnaZed
14 years ago

A second perusal of Joe’s begging letter:

“…We have no choice but to sell and liquidate every asset in order to pay this staggering sum as our very freedom hangs in the balance. Our parents are doing the same,sacrificing retirement savings and taking on unprecedented debt to aid us.”

What an audacious coal-fired liar that Joe is.

I wonder if any of the contributors to the trouple fund know of these property ownership arrangements. I wonder if any (or if even one) are reading this blog and having various crises of confidence not least being the always troubling perception of being financially manipulated and conned.

Bea
Bea
14 years ago

Some relevant facts which go with this post (sorry, no time to ferret them out).

In the Defendants’ Motion for Pretrial Release, the following “facts” were put before the court:

“Though Ward relocated to Florida in October 2007—more than a year after the alleged
obstruction occurred—Ward has strong ties to the District. He will live and work here until this
matter is conclusively resolved.
***
In October 2007, Ward decided to explore the possibility of living and working in South
Florida. Accordingly he made arrangements to rent a room from friends already living there and
moved to Ft. Lauderdale, Florida. After moving he continued doing contract work with the
direct mail fundraising company and maintained his close network of friends and colleagues in
the District, traveling here frequently for visits.
On June 2, 2008—after extensive renovation work was completed to repair hundreds of
thousands of dollars of damage done to their home by the Metropolitan Police and almost two
years after Robert Wone’s death, Price and Zaborsky sold their home at 1509 Swann Street.
After selling the house they temporarily lived with Zaborsky’s aunt who owns a home in
McLean, Virginia where she has lived for more than thirty years. While living with Zaborsky’s
aunt, Price and Zaborsky searched for a residence to purchase in the District, planning to buy a
condo in the District and also in Miami, Florida, where they have regularly vacationed for more
than seven years and where Zaborsky regularly travels for work. After an extensive search, Price
and Zaborsky ultimately obtained a contract on a two-bedroom condominium in the District for
$725,000. They ultimately cancelled the contract based on their belief that the price was simply
too high and that the District’s real estate market was still overvalued unlike markets like
Southern, Florida where Price and Zaborsky realized they could obtain a much better buy.
Accordingly they decided to rent an apartment in the District and to take the proceeds from the
sale of their Swann Street home and invest them in a home in Miami. They eventually purchased
a home in Miami Shores, Florida on June 26, 2008, and leased an apartment for one year in the
District. See District Lease, attached at Exhibit A.

In July 2008, Ward moved to Price and Zaborsky’s Miami Shores home and began
paying them rent and managing the home. Price and Zaborsky continued to live and work in the
District, traveling to the Miami Shores home approximately once a month with family and
friends.
After the devastating news of Ward’s arrest and that charges against them were
imminent, Price and Zaborsky made plans to rent the Miami Shores home. Accordingly, in early
November they engaged a real estate agent to rent the home and on November 22, 2008, their
tenants signed a lease renting out the home for one year, beginning in December 2008. See
Miami Shores Lease, attached at Exhibit B.”
***
In a Legal Times article about the hearing in which Zaborsky and Price were trying to reduce pretrial restrictions:

“Superior Court officials have now released a transcript of what was said. According to the transcript, some of the bench discussion involved the government’s claims that Price and his partner, Victor Zaborsky, had planned to move to Florida. Prosecutor Glenn Kirschner told Epps that Price sold the Dupont Circle home where Wone was murdered and that Zaborsky had obtained a Florida drivers license.”

****
Interesting in the Pretrial Motion that ORIGINALLY the Government wanted $250K bond for Joe Price and $100K for Victor Zaborsky – though they reduced Joe’s to $100K (and then later dismissed the request). Still, what do they know which makes Joe “more expensive”???

CDinDC
CDinDC
14 years ago
Reply to  Bea

Thanks for compiling that info Bea.

Clio
Clio
14 years ago
Reply to  CDinDC

Wow, thanks, Bea.

How and why they thought that southern Florida’s housing market was not overvalued is beyond my comprehension!

So, trouple visits and stays in Florida may be going on, even as we type. The “tenant” may be a compliant satellite. And, the lease is up next month. So, doing their penance at Aunt Marcia’s may be a scam, too?

Why would a milk marketeer travel to Miami frequently? Did they regularly vacation in Miami — can anyone verify that? The only Swann entourage vacation about which I recall reading took place in Italy. At least, though, Dyl was paying Victor and Joe rent from July through October 2008.

Mike
Mike
14 years ago
Reply to  Clio

At the very least it explains Li’l Dyl’s crispy face in the recent photos. Maybe Aunt Marcia wasn’t even getting any gardening work out of her most shiftless squatter. Now I’ve got a visual of him lolling on the Florida sands with an umbrella drink…grrrrr.

AnnaZed
AnnaZed
14 years ago
Reply to  Mike

Like Kathleen Turner at the end of Bodyheat, arg!!!

Bea
Bea
14 years ago
Reply to  Bea

Bad taste to post to one’s post, but as for the last-listed fact, presumably (and I think I recall this) that Price/Zaborsky’s attorneys argued that the two gents had no plans to move to Florida, which could harm their later arguments (you know Price reads and approves everything before filing). I think it was stated that Zaborsky traveled there often for business and had gotten a Florida Driver’s License for that reason (which doesn’t make sense, really) but they had no plans to leave DC and were not flight risks.

Meto
Meto
14 years ago
Reply to  Bea

Bea and others:

There are I guess multiple potential explanations for what I see to be conflicting “facts”. Perhaps the most obvious is that any efforts to establish Florida Domicile in mid-2008 (assuming that was being attempted and I think the facts suggest yes) backfired in light of need to stay out of jail once the criminal charges were filed. Could it be that the criminal charges surprised any plan?

Another explanation is that notwithstanding the assertions in the criminal case regarding D.C. residence, that if things “work” out in the criminal trial, the claim could later be made that they really are domiciled in Florida for the civil case — that they only said that precisely to stay out of jail. It was all that pesky decision to charge them with conspiracy that made them do it.

I agree the Florida driver’s license assertion makes no sense unless it is to establish domicile. It just doesn’t wash.

Maybe I really am a Puritan, but (I know someone on here said “everybody does it”) in the face of the rental of the Florida property, there is no right to claim the Homestead Exemption (property tax). It isn’t a lot of money, but it is the principle of the thing. It is a telling point for me when judging other contested facts.

Respectfully,

Meto

Bea
Bea
14 years ago
Reply to  Meto

I agree, Meto, that having rented the Florida property (and thus changing its tax status so they cannot claim mortgage interest on their taxes, but instead ‘income’) they’ve screwed the pooch on any chance of claiming ‘homestead’. It was clear during the pretrial release flurry of documents that the “faxed” Florida lease plan was hatched at the last moment and sent in to keep them free to say they had no plans (or home) to leave DC.

Of course, I smile when I think of the luxury rental they got while this was going on and hope they at least lost their deposit as they came to realize they could only ‘afford’ Aunt Marcia’s basement.

It seems likely that the plan WAS to have a spot ready to go in Florida if/when the civil suit was filed but DRAT those criminal charges that made them say they weren’t flight risks!

Clio
Clio
14 years ago
Reply to  Bea

Wonderful analysis, Meto and Bea. I am thankful on this holiday eve for the sudden realization that Joe’s machinations to elude justice may have backfired, due to events beyond his control. History does have a way of messing up the best-laid plans: Florida, Florida, Florida, indeed!

Craig
Craig
14 years ago
Reply to  Clio

“Florida, Florida, Florida.” Pitch perfect as always Clio.

Thank you for giving this Washington hack his very first gift of the holiday season.

Clio
Clio
14 years ago
Reply to  Craig

Thanks, Craig.

In the following two pieces of electronic flotsam, you do see Dyl becoming a Floridian, during 2008, at least:
http://www.thaibodywork.com/thai_massage/therapist2/dylan_ward/

Three-hour outcalls: exhausting!

Then, he transferred to Florida “professionally” in July 2008:

http://www.amtaflorida.org/pdfs/Fall%20FL%20Journal%209.2.08.pdf

He’s listed as a July transfer to Florida on page 7 of this journal.

Anonymous in DC
Anonymous in DC
14 years ago
Reply to  Clio

Good find! Seems like Dyl has finally committed to a profession.

Clio
Clio
14 years ago

Now, that Mr. Ward has finally decided (in his late 30s) what he wants to be when he grows up, it would be great, from his lonely perspective, if Victor and Joe could only commit to him — for real and not just for the trial or for his daddy’s money.

Uncle Dylan — still a frontier territory applying for statehood to the Union?

Three-hour outcalls: how many masseurs do sessions for that long? Thai massages of that unusual duration must be Dyl’s special niche by which he could charge over $250 per session.