We're South Dakota residents via an Americas Mailbox PMB. Recently, we've decided to get a house in Arkansas to spend a good part of the year at, rather than true RV full-timing like we had been. So, I suppose we will soon be in the part-timers category. We are now under contract on a home in Arkansas. My question, we want to remain SD residents due to the tax advantages, and having mail forwarded when on the road. Does anyone know if this is possible?

You will own property in Ark. and live in Ark. but claim residence in some other state. You will be filing false returns. Even if it is "possible" it is illegal.

I have purchased 2 "vacation" homes in TN while my "full-time" home (domicile)is a mail box in SD. To get the lowest interest rate the new home needs to be a "vacation" home or it can be you primary home if you plan to live in it within 3 months.The key for "domicile" that is Tax home is where do you consider Home. Make sure that "important" mail (tax bills, bank statements, Social Security information, insurance, and car tags) is sent to your home in SDThink of a student away from "home" while in college but living at in an apartment. Or a solder station for 3 years at an army base away from "home". Or a person on a "temporary" job assignment lasting 2 years.Domicile vs Residence

bgum is wrong. You could own property in several states at the same time.Usually the way it's done is based on where you spend the majority of your time. In order to continue to receive the Permanent Fund Dividend check from the state of Alaska, you have to be able to prove that you spent at least 180 days in Alaska per calendar year. It doesn't matter to the State if you own property else where and there are a lot of Alaskan snowbirds.Bill

bgum wrote:You will own property in Ark. and live in Ark. but claim residence in some other state. You will be filing false returns. Even if it is "possible" it is illegal.You can own property in all 50 states that doesn't decide if you are a resident in that state. Usually it is when you work in a state. You may have to file income tax for that state if you earn an income.

bgum wrote:You will own property in Ark. and live in Ark. but claim residence in some other state. You will be filing false returns. Even if it is "possible" it is illegal.By possible, I meant legal. I do not intend to do anything illegally. I merely want to know what others do when they have property in two different states. The SD property is just a rental - in addition to the PMB. The AR one will be a purchase, not a rental. If I do keep the SD residency, yes, I will continue to have all mail go through to the SD address. I am a self employed independent contractor and my biz is also under the SD address. Therefore, all of my biz mail will continue to go to the PMB. Our cars are also tagged under SD. I don't know if these explanations help with attempting to make my question make more sense. I do appreciate the assistance thus far. Trying to get a game plan going once we close in July.

SD Resident Buying Property in Arkansas | Good Sam Community

bigdogger
Explorer II
Jun 10, 2014
When a taxing authority goes after someone for not filing and paying the proper taxes, the number one source for the information that started that investigation is friends and acquiantances of the person being investigated. My guess is that if the OP made a large income from their business and the only property they own is in Arkansas, the Arkansas taxing authorities could make a pretty good case that the OP's business was based in Arkansas, the OP lived in Arkansas and hence owes state income tax to Arkansas. Since they own property there, the state would have an asset to attach a lien against. Then it would be the OP fighting the state which would be a fight where the odds would greatly favor the state since they have much deeper pockets to fund the fight. If the OP makes a small amount of money, no big deal. If you are talking big bucks, there will be people who will take an interest and it will be the person you least expect who will turn you in. Nobody likes paying taxes and it will rub even your best friend the wrong way if they pay and you cheat and don't.
kakampers
Explorer
Jun 10, 2014
AdvSeekers wrote:
kakampers wrote:
To be legal just be sure to not stay any longer in Arkansas then their residency requirement allows....you can own property anywhere. We own in Texas, but make sure we don't stay longer than their six month requirement...we have stayed SD "residents" all along...

How do you prove how long you are in Texas? We plan to come and go in the camper whenever we see fit - no set time frames.

It doesn't become an issue unless someone, usually a neighbor or law enforcement questions it. If you would need to show proof, campground receipts from out of state will usually supply the necessary timeline proof...
AdvSeekers
Explorer
Jun 09, 2014
Thanks for the advice and brainstorming everyone! I have contacted the necessary tax professionals for advice and we are going to proceed based on that.
lbrjet
Explorer
Jun 09, 2014
Your tie to AR is performing work there. Doesn't matter if your client is on the moon. Will you get away with it? Most certainly if you quit announcing your intentions on the internet or anywhere else.
AdvSeekers
Explorer
Jun 09, 2014
My contract is out of the east coast (has been for years), and there are no other clients. So, no ties to AR. Bgum, you make good points, and some I hadn't thought of. Thank you. Everyone has been very helpful. Just a note: we have a PMB in SD and also a small rental residence there.
CKNSLS
Explorer
Jun 09, 2014
NRALIFR wrote:
AdvSeekers wrote:
We're South Dakota residents via an Americas Mailbox PMB.

It's been my understanding that PMB's alone cannot be used to claim residency. Do you own a residence in SD?

You'll be paying property/personal property tax to Arkansas, so you'll be assessing with the county your house is in regardless of your SD residency. It's not like you'll be invisible to the state.

I hope you contact a competent tax/legal adviser on this, because your "self employed independent contractor" status is one that can put a lot of different twists on this. Who are you performing work for? Are any of your clients in the state of Arkansas? Even if you're a non-resident, if any of your income is from an Arkansas source, you're supposed to file an income tax return with the state.

Moving to Arkansas Guide

"Non-residents and part-year residents who have received income from any
Arkansas source must file an Arkansas income tax return regardless of their
individual income level. A non-resident is defined as someone who does not
maintain a home or other residence in Arkansas. A part-year resident is defined
as someone who has established a home or other dwelling place in Arkansas at
some time during the previous calendar year or as someone who moved out of
the state during the previous calendar year. A residence is defined as a lodging
place used as a permanent dwelling place or a dwelling place to return to at
some point during the calendar year."

:):)

Based on the above it certainly sounds like he won't be able to claim SD as a residence.
NRALIFR
Explorer
Jun 09, 2014
AdvSeekers wrote:
We're South Dakota residents via an Americas Mailbox PMB.

It's been my understanding that PMB's alone cannot be used to claim residency. Do you own a residence in SD?

You'll be paying property/personal property tax to Arkansas, so you'll be assessing with the county your house is in regardless of your SD residency. It's not like you'll be invisible to the state.

I hope you contact a competent tax/legal adviser on this, because your "self employed independent contractor" status is one that can put a lot of different twists on this. Who are you performing work for? Are any of your clients in the state of Arkansas? Even if you're a non-resident, if any of your income is from an Arkansas source, you're supposed to file an income tax return with the state.

Moving to Arkansas Guide

"Non-residents and part-year residents who have received income from any
Arkansas source must file an Arkansas income tax return regardless of their
individual income level. A non-resident is defined as someone who does not
maintain a home or other residence in Arkansas. A part-year resident is defined
as someone who has established a home or other dwelling place in Arkansas at
some time during the previous calendar year or as someone who moved out of
the state during the previous calendar year. A residence is defined as a lodging
place used as a permanent dwelling place or a dwelling place to return to at
some point during the calendar year."

:):)
CKNSLS
Explorer
Jun 09, 2014
First-I am not familiar with the tax laws. Just making a thought here-

You claim residence in one state but own no property there.

You are going to cease to be full time. Your RV is not your main domicile anymore.

But you do (will) own property in a state where you will be staying.

Where will your Doctors, Dentists, etc., be located?

Seems like to me there could be issues......
lbrjet
Explorer
Jun 09, 2014
If you are performing work in Arkansas, regardless who it is for, then you owe Arkansas income tax. You should consult a tax advisor.
bgum
Explorer
Jun 08, 2014
For those who say they own property in a different state and all is good, I say you haven't been thru an audit and a legal decision has not been rendered in your particular set of circumstances. Look at his first post. He stated he has only a box for mail. No mention of rental or ownership of property in SD. Property in a different state is only an indicator of residence. The fact that he "plans" to spend a considerable amount of his time there and is only a part timer is additional indicators. I stick to my orig. post.
I am sure these folks will go with you to the audit and explain to the officer how their residence is set up.