Did you just relocate to with your company?

Financial, Tax, and Lifestyle Tips for Corporate Professionals Did you just relocate to North Carolina with your company? Financial, Tax, and Lifestyle Tips for Corporate Professionals

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Financial and Tax If your company recently moved its headquarters or established a new office in North Carolina and you have been asked to relocate to the Tar Heel State, you probably have countless questions. A corporate relocation can be both exciting and stressful as you consider which neighborhoods fit your unique preferences, should you rent or buy, what is the cost of living difference, where the best schools are, and more. We hope that this paper will help you make your transition to North Carolina as smooth as possible, and help you consider some issues that may not have been top-of-mind.

Understand North Carolina & South Carolina’s Because Charlotte is situated close to South Carolina, Income Tax Structure living in South Carolina while working in North North Carolina’s income tax rate is currently 5.25%. Carolina is also an option. If this should apply to If this rate is higher than the state in which you you, you will need to file a state tax return in North resided, there may be an opportunity to recognize Carolina as a non-resident as well as file a South some income (e.g., realizing capital gains in your Carolina resident tax return because South Carolina portfolio or exercising stock options) before you taxes its residents on all income regardless of the move. This is a topic you may want to proactively state of origin. South Carolina offers its residents explore with a CPA as certain states have recapture a state income tax credit for North Carolina taxes rules whereby if you earned income while working paid – given this, it is important to first calculate in State A and move to State B before the income is your North Carolina tax liability. South Carolina has paid out to you, State A can argue that they have a a progressive state income tax structure with its top claim to their share of the tax burden. Before you tax rate topping out at 7%. While South Carolina’s decide to recognize a sizable amount of income, be income tax rate is higher than North Carolina’s, sure to consult with a CPA who is familiar with North South Carolina residents often pay less in real estate Carolina and your prior home state. property taxes.

| 2 Because your take-home paycheck, assuming the for this new cost and consider how the tuition costs same salary, may be higher or lower than your and expenses will be paid. Also, there is always the prior paycheck given the difference in state tax option of enrolling your children in North Carolina’s rates, you should consider doing some quick math public-school system or possibly homeschooling before you sign your relocation package. Other your children. If sending your children to private important considerations include the cost of living school is preferred, you will want to research the differential and how, if at all, your relocation package various private schools in the area to account for compensates you in the event that you will be overall tuition costs, location, overall fit based experiencing a cost of living increase. If needed, upon preferences such as religious affiliation, etc. you can consider negotiating a higher salary to at From a purely financial perspective, developing least keep pace with your projected after-tax an understanding of your annual education costs living expenses. is important because it may influence where you live and how much you can afford to spend on a Cost of Living and Education new home aside from the potential impact on your Cost of living is often a major component within overall lifestyle (i.e, impact on entertainment and an employee’s relocation package. In addition travel budget). Presently, there are more than 80 to understanding housing and recreation costs, private school options in Charlotte with private high you may also need to understand the education school averaging $14,000+ annually1. landscape as well. North Carolina also offers other educational options Private school tuition can be a substantial budgetary such as charter schools, magnet schools, and the item for any family, and if you have never had to North Carolina Virtual Public School. For more pay it before, you will want to proactively budget

1https://www.privateschoolreview.com/north-carolina/charlotte

3 | information, please visit North Carolina If your child would like to pursue their college Department of Public Instruction’s website at education in North Carolina, it can be helpful to https://www.dpi.nc.gov/. know that North Carolina residents can benefit from the Fixed Tuition Program. Assuming the enrollment Consider North Carolina’s National College requirements are met, the Program affords college Savings Program (529 Plan) students attending a UNC system university the Saving for college to help alleviate the escalating ability to complete their four/five-year program of costs of higher education is a major goal for a lot of study without experiencing any tuition increases. working families and contributing to a 529 plan is Universities participating in this program include, a common education savings investment vehicle. among others, the University of North Carolina Unlike the majority of states today, where the full at Chapel Hill, Appalachian State University, UNC or partial 529 plan contribution is deductible for Charlotte, and . state income tax purposes, North Carolina is one of a handful of states with no state income tax deduction Review Your Estate Plan benefit. Even though there may not be an upfront It is always a good idea to revisit your estate plan tax benefit for contributions to a NC 529 plan, the upon moving from one state to another. One proceeds within a 529 plan still have a chance to reason for this is because North Carolina may have grow tax-free and be withdrawn without any tax different estate laws than your previous home consequences so long as the proceeds are used for state. For example, North Carolina does not have qualified education expenses. a state estate or inheritance tax like many other

| 4 states. Additionally, it is important to update your to your prior state of residence, they may not be in financial powers of attorney, medical directives/ North Carolina. One option for you to consider is living wills, and estate planning documents such potentially swapping out of them and purchasing as your will and revocable living trusts to ensure North Carolina municipal bonds. While we do your documents comply with prevailing law. not advocate that taxes should drive investors’ Finally, you should revisit and amend, as needed, investment strategy, an investment portfolio should your fiduciary appointments within your estate be constructed with a mindfulness of tax-efficiency. planning documents such as the executor of your Ask for Introductions will, successor trustees named within your trust agreements, and guardians of minor children. After reading this paper, you may find yourself While the previously named individuals may still looking for new tax, financial, and/or legal advisors. be capable and willing to serve when their help is One option is to talk with your new coworkers or needed, it can certainly be a more challenging task neighbors for introductions to potential new tax, to carry out one’s duties and responsibilities while financial, and/or legal advisors. One of the best being separated by hundreds or perhaps thousands ways to find a qualified professional is to ask trusted of miles. friends or colleagues in a similar job type this question: “As things relate to financial planning, Investment Strategy whom have you had a good experience working with Your investment strategy may also need some fine in the past?” tuning. For example, if you own municipal bonds in your portfolio that are tax-exempt with respect

5 | Lifestyle Midwood is among the most diverse and eclectic “Uptown” Charlotte neighborhoods in the area, offering a variety of things to do, see, and drink. The neighborhood If you want to do your best to blend in to your new features thrift shops adorned in graffiti, historic surroundings, it is probably important to know that homes, and a wide variety of restaurants and local Charlotte refers to its downtown area as “Uptown.” breweries. For those that prefer lake living, ”Lake There are numerous online articles describing the Norman and Mountain Island Lake are located reasons for this. In short, the origins of the “Uptown” north of the Queen City and Lake Wylie is situated name are rooted in the topography of the local area southwest of the city, flanked by the North Carolina as well as a city proclamation dating back to and South Carolina state borders. the 1970s. In terms of the residential real estate market, the Housing demand for housing in metro Charlotte has outpaced The metro Charlotte area offers many family-friendly supply. According to World Population Review, suburbs as well as neighborhoods that can appeal to “Charlotte is currently the third fastest-growing a broad range of interests and lifestyles. major U.S. city,” and if “its population growth continues, Charlotte’s population is set to surge by North Davidson, often referred to as “NoDa,” is 47% from 2010 to 2030.”2 In the last couple of years, currently Charlotte’s historic arts and entertainment the Queen City’s population grew at a pace of 90-120 district, and it was previously home to textile people a day.3 Due to the strong population growth, manufacturers and homes for mill workers. Plaza

2https://worldpopulationreview.com/us-cities/charlotte-nc-population 3https://www.bizjournals.com/charlotte/news/2020/03/26/charlotte-metros-population-keeps-climbing- new.html#:~:text=Its%20annual%20numeric%20increase%20of,the%20nation’s%20384%20metro%20 areas.&text=When%20looking%20at%20the%20past,most%20of%20its%20U.S.%20counterparts

| 6 hopeful homeowners should not be surprised if city in the country, and Charlotte commuters lost there are multiple other offers and perhaps a approximately 49 hours per year due to traffic bidding war. congestion. Among the top 25 congested cities in the United States, Charlotte experienced one of the The cost of housing in Charlotte can vary largest year-over-year “hours lost to congestion” significantly. Unsurprisingly, a big determining increases (14%) between 2018 - 2019. factor is location. According to Realtor.com, the median sale price of homes sold in Charlotte in The ever-expanding Lynx Light Rail, Charlotte’s light May 2020 was a little more than $275,000. In 2019, rail transportation option, has more than 19 miles the Charlotte Business Journal highlighted zip of track and runs from the terminus code 28207 as the most expensive zip code in North up to the University of North Carolina at Charlotte Carolina. This area encompasses the and campus. There are currently 26 stations along the Eastover neighborhoods. line with future expansion to the Charlotte Douglas Airport. For more information about the Lynx Light In search of more affordable housing, lower taxes, Rail, visit www.charlottenc.gov. and great schools, more and more families are migrating to South Carolina. York County, located Charlotte Douglas International Airport (CLT) southwest of Charlotte on the state line, is home to Charlotte Douglas International Airport (CLT) is some of South Carolina’s best public schools. named to honor a former Charlotte mayor, and today Commuting to and From Work the airport is currently one of the busiest in both the U.S. and the world. In 2019, the airport itself reported As the area becomes more densely populated and the that it had more than 50 million passengers in 2019 city sprawl continues, it is important to give some making it the 11th busiest airport in the United thought to your daily commute to and from work. States ranked by passenger traffic. Charlotte Douglas A 2019 study by the transportation firm, INRIX Inc., International Airport is a hub for American Airlines reveals that Charlotte is the 24th most congested

7 | and serves approximately 175 nonstop destinations • Peppervine - seasonal local ingredients prepared across the globe. For more information about with global influence Charlotte’s airport, please visitwww.cltairport.com • The Stanley - locally sourced food served in a as well as download the airport’s app, CLT Airport. neighborhood atmosphere Charlotte’s Food and Craft Beverage Scene • Good Food on Montford - creative American There is no shortage of fantastic food options in small plates in a trendy spot Charlotte as well as a slew of new eateries, breweries, and bars opening every day, hosting some of the • Dogwood Southern Table - serves Southern eats country’s top chefs, mixologists, and bakers. made with local ingredients in a rustic space

Some of the area’s marquee annual events • Habberdish - inventive Southern comfort food showcasing the best local restaurants include: • Price’s Chicken Coop - takeout only staple

• Queen’s Feast: Charlotte Restaurant Week since 1962 showcases more than 100 of the metro-Charlotte • Optimist Hall - a hip site with a wide variety area’s best restaurants in January and July. of food and bar stands plus art, music, and

• Taste of Charlotte, held each September, is a outdoor seating three-day food festival featuring more than 100 • Sulffolk Punch - a coffee bar, brewery, eatery, and top area restaurants and includes performances, fermentation lab all in one live music, and activities for the whole family. • Stagioni - a cozy eatery featuring a seasonal menu A sampling of the Queen City’s destination-worthy highlighting modern takes on classic Italian restaurants in the area include:

| 8 If you enjoy cooking, Charlotte offers some • Sycamore Brewing outstanding farmers markets in Cotswold, NoDa, and • The Unknown Brewing Company Uptown, as well as the expansive Charlotte Regional Farmers Market near the airport. • Lenny Boy Brewing

Charlotte is home to more than 30 breweries, and Family, Arts, & Cultural Activities over a dozen are within walking distance of one Professional Sports another in the NoDa and Southend areas. Many breweries are family and dog friendly, so they can Charlotte has professional football and be a great place to hang out and relax with family teams, and Charlotte FC, the area’s MLS expansion and friends. soccer team, is slated to debut in 2022. serves as the home stadium for Some of the area’s most popular craft both the and Charlotte FC, and the breweries include: Spectrum Center serves as the home court for the • The Olde Mecklenburg Brewery .

• Heist Brewery and Barrel Arts Charlotte is also home to the , which hosts NASCAR races such as • Brewers at 4001 Yancey the prestigious Coca-Cola 600 on Memorial Day • Catawba Brewing Company weekend, the NASCAR All-Star Race, and the Bank of America Roval 400. • Devils Logic Brewing The Wells Fargo Championship, a perennial PGA • NoDa Brewing Company tour golf tournament hosted at Charlotte’s own • BirdSong Brewing Quail Hollow Club, attracts some of the top PGA tour players and is held in May each year. • Wooden Robot Brewery

9 | Fun Things to Do and Places to Visit Daniel Stowe Botanical Gardens

Charlotte has plenty of activities to offer people and This all-seasons garden spans 380 acres on the families of all ages. Below are some of the top things banks of Lake Wylie, offering spectacular gardens, to do and places to visit in the metro-Charlotte area: fountains, a tropical plant conservatory, nature trails,

Billy Graham Library and visitor pavilion. The annual Christmas Lights at the Garden event is a perennial “must attend” event The Billy Graham Library is the “#1 thing to do in for many in the local area. For more information, Charlotte” according to TripAdvisor. Situated on visit www.dsbg.org. more than 20 acres, the Library also honors Billy Graham’s childhood architecturally, resembling a Bechler Museum of Modern Art dairy barn because Graham grew up on a dairy farm. This museum is one of only two museums in the

U.S. National Whitewater Center US designed by Mario Botta. The Museum houses a large collection of mid-20th century art by Miro, This premier multi-purpose outdoor recreational Giacometti, Picaso, Calder, Hepworth, Warhol, and center offers whitewater rafting, canoeing, kayaking, many others. For more information, visit rappelling, rock climbing, ziplining, and more. For www.bechtler.org. more information, visit www.usnwc.org. Charlotte Symphony Orchestra NASCAR Hall of Fame Charlotte’s hometown orchestra hosts a series of The Hall of Fame Museum honors NASCAR’s history outdoor performances at Symphony Park, an outdoor and most celebrated drivers. For more information, pavilion nestled in the SouthPark neighborhood. visit www.nascarhall.com. The orchestra’s performances are very popular, and attendees often bring a picnic blanket as well as their

| 10 food and beverage of choice while listening to music city” and the number one small city in the U.S. under the stars. Charleston is a quick 3-hour drive from Charlotte.

Carowinds • Savannah, GA – Savannah, known for its idyllic Spanish moss and oak trees, is sure to charm, The 407-acre thrill ride theme park also features a 27- offering rich history, beautiful coastlines, acre water park known as Carolina Harbor. For more riverboat cruises, and lots of southern hospitality. information, visit www.carowinds.com. Savannah is approximately 4 hours away. Discovery Place • Outer Banks, NC – The Outer Banks or “OBX,” This hands-on museum is focused on science, featuring 100+ miles of shoreline and beaches, is technology, and nature that will keep children and a popular family beach destination and it is also adults entertained for hours. For more information, home to the popular Spanish mustangs which visit www.discoveryplace.org. have lived in the wild for hundreds of years. OBX is approximately a 6-hour drive from Charlotte. Vacation and Weekend Destinations within Driving Distance • Hilton Head Island, SC – Often referred to as Someone once said that “life is better in flip flops” one of the top 10 family beaches in the U.S., … or perhaps in hiking boots or no shoes at all! Hilton Head Island is approximately four hours After a long week at the office, local residents have drive from Charlotte, providing relaxation, numerous vacation and weekend destinations within tremendous golf options, and a laid-back vibe. reasonable driving distance from Charlotte. Mountain/Lake Destinations

Coastal & Lake Destinations • Asheville, NC – Asheville offers a little bit of • Charleston, SC – Charleston has been a perennial something for everyone and has a thriving food, recipient of Condé Nast Traveler magazine’s “top arts, and entertainment scene. Popular tourist

11 | attractions include the Biltmore Estate, hundreds Who Are McGill Advisors? of beautiful waterfalls, hiking trails and lookout McGill Advisors, a division of points, Lake Lure, and festivals that appeal to a wide Brightworth, is a nationally recognized range of interests. Asheville is a short 120-minute and fee only wealth management drive from Charlotte. firm with offices in Charlotte, NC and Atlanta, GA. The firm has deep • Boone, NC – The NY Times has described Boone as expertise across its financial disciplines a “gem of a college town in the heart of Southern which allows its professionals to Appalachia”. Local attractions include several provide ongoing and comprehensive high country destinations such as Grandfather financial advice to families across Mountain’s mile-high swinging bridge and an the country. opportunity to take a nearby detour on the Blue Ridge Parkway. Boone is just a two-hour drive from the Queen City. This information is provided as a • Lake Jocassee, SC – Approximately 3 hours away, guide to assist you in your financial Lake Jocassee is a great fit for the family that enjoys planning. The specific examples are spending some time on the water. A quick glance provided for illustration purposes of travelers’ reviews on TripAdvisor tells you only and are not representative of everything you need to know about this beautiful specific investments or guarantees lake which features beautiful blue water, waterfalls, of future returns. Please consult with and more. a professional for specific questions regarding your particular situation. If you are simply looking for a change in urban scenery, there are several nearby city destinations worth a trip: 1) Nashville, TN (6.5 – 7hr drive), 2) Atlanta, GA (4hr drive), 3) Washington, D.C. (6hr drive), and 4) Louisville, KY (7.5 – 8hr drive).

On behalf of our entire team at McGill Advisors, a division of Brightworth, we would like to welcome you to your new home. We are here to answer your questions, and it is always a pleasure to simply be able to say “hello”.

8816 Red Oak Blvd., Suite 260 | Charlotte, North Carolina 28216 | 866.727.6100 mcgilladvisors.brightworth.com

Rev 2020.10