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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Definition of Primary Residence Posted by CC in OC on August 27, 2008 at 2:11 AM In Reply to: Re: Nervous in CA posted by Tom on August 22, 2008 at 8:28 AM Definition of principal residence One of the most perplexing issues in the new law was the definition of a principal residence. Under the old law, many issues dealing with the definition of a principal residence had been ruled on by the courts. But many tax pros were unsure if those definitions would also apply to the new law. If you have multiple homes, and spend considerable time in each, this becomes an extremely important issue. The IRS says that, generally, your principal residence will be the home where you spend the majority of your time. But this isn't the only test. Other factors that will be relevant to the determination include but are not limited to: Your place of employment Where your family lives The address you use on your tax return The address you use for your general mail, bills, bank statements, and brokerage statements Where you maintain your bank accounts and banking relationships Where you maintain your memberships (such as country clubs, health clubs, etc.) and religious affiliations Not stated in the regulations but important to the determination of your principal residence are: Where you are registered to vote The address on your driver's license The property on which you claim your homeowners property tax exemption (many states and counties allow for the payment of lower property taxes on your principal residence) None of these issues will provide a clear definition of your principal residence. As noted in the regulations, all of the facts and circumstances will be considered. If you have a second, third, or even a vacation home that you are considering selling and would like to avail yourself of the gain exclusion rules, make sure that it'll qualify as your personal residence taking into consideration all of the issues noted above. More at: http://www.fool.com/personal-finance/taxes/2003/01/31/home-sale-rules-clarified.aspx Follow Ups: Re: Definition of Primary Residence ToLiveAbroad 6:50 PM, 08/17/09 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Definition of principal residence : One of the most perplexing issues in the new law was the definition of a principal residence. Under the old law, many issues dealing with the definition of a principal residence had been ruled on by the courts. But many tax pros were unsure if those definitions would also apply to the new law. If you have multiple homes, and spend considerable time in each, this becomes an extremely important issue. : The IRS says that, generally, your principal residence will be the home where you spend the majority of your time. But this isn't the only test. Other factors that will be relevant to the determination include but are not limited to: : Your place of employment : Where your family lives : The address you use on your tax return : The address you use for your general mail, bills, bank statements, and brokerage statements : Where you maintain your bank accounts and banking relationships : Where you maintain your memberships (such as country clubs, health clubs, etc.) and religious affiliations : Not stated in the regulations but important to the determination of your principal residence are: : Where you are registered to vote : The address on your driver's license : The property on which you claim your homeowners property tax exemption (many states and counties allow for the payment of lower property taxes on your principal residence) : None of these issues will provide a clear definition of your principal residence. As noted in the regulations, all of the facts and circumstances will be considered. If you have a second, third, or even a vacation home that you are considering selling and would like to avail yourself of the gain exclusion rules, make sure that it'll qualify as your personal residence taking into consideration all of the issues noted above. : More at: http://www.fool.com/personal-finance/taxes/2003/01/31/home-sale-rules-clarified.aspx [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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