SD Resident Buying Property in Arkansas

[AdvSeekers]

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?

[AdvSeekers]

Our realtor did indicate that Arkansas does have the Homestead Act where we get a $350 tax credit if we flash an AR drivers license to them at the courthouse with that address on it. We will of course forgo that, as $350 is not a large savings in comparison.

As for state income tax, I would assume since I will continue to work remotely and keep my biz registered with SD, I would avoid income tax.

[MTPockets1]

Not a problem with keeping SD as your permanent address. Each State has it's own residency requirements and may require you to claim residency if you are there over their stated legal requirements. Also, some states have different property tax rates for resident owners and remote owners. Florida and some other states for example have a lower Homestead rate for resident owners and a much higher rate if you own it but are not the legal resident. Bottom line, you can do it and should check with the State for the tax rules.

[AdvSeekers]

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.

[WyoTraveler]

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.

[Trackrig]

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

[TenOC]

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 SD

Think 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]

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.