principal residence

Main Home

The place where one lives most of the time. The main home is important to persons who own multiple properties because vacation homes and investment properties are taxed differently than the main home. In particular, one is not required to pay capital gains tax on the sale of a main home, provided one then buys another main home of equal or greater value. A main home is also called a principal residence.

principal residence

The place one declares as his or her primary domicile;the address used on a driver's license,for voting,and for income taxes.The choice of a principal residence can make a difference regarding liability for income taxes, estate taxes, creditors' rights, homestead exemptions, and other such legal and economic consequences.

Principal Residence

A principal residence is generally the home in which a taxoayer lives most of the time. A taxpayer who sells a principal residence that he or she owned and lived in for at least two years in the five-year period ending on the date of sale may be able to exclude up to $250,000 ($500,000 on a joint return if both spouses used the home as a principal residence for the required time) of gain from the sale. A taxpayer can have only one principal residence at any time. A principal residence can be a home, condominium, cooperative apartment, townhouse, mobile home, or houseboat.
References in periodicals archive ?
However, Magistrate Godwill Makofi ruling that with the evidence before him, Advocate Boko's principal residence was Phase 2.
Tenders are invited for Construction of steps from kitchen dining to principal residence, ramp for kitchen dining modification of earth quake damage building i.e.
Affirming a Tax Court decision, the Eighth Circuit held that a taxpayer who repossessed his former principal residence after the buyer defaulted had to recognize gain equal to the excess of the cash received over the previously recognized gain.
A PORTION OF THE GAIN FROM THE SALE OF A principal residence can be excluded when the taxpayer fails to meet the requirements for full exclusion of gain (i.e., the ownership and use requirements or the one-sale-in-two-years requirement) when the primary reason for selling or exchanging the principal residence was a change in place of employment, health, or unforeseen circumstances (Sec.
What exclusion is available for gain on the sale of a principal residence?
A new stare law (SB 401) allows most taxpayers to exclude canceled mortgage debt income of up to $500,000 on their principal residence. The limit is $250,000 for married/registered domestic partner individuals filing separately.
If the taxpayer uses the remaining portion of the mixed-use property as a principal residence, it is possible for the taxpayer to bootstrap the provisions of IRC section 121 to section 1031.
For the years between 2000 and 2004, the Browns' condo qualifies as their principal residence. The principal residence exemption, discussed below, allows the couple to eliminate or reduce any capital gain on the disposition of their home.
and used by the taxpayer as a residence (except that any fuel cell must be installed in the taxpayer's principal residence).
This is the third in a series on the consequences of renting out a house that previously was a principal residence. The first two articles covered the tax implications of temporarily renting out your old home in order to mitigate the expense of owning two homes.
The Taxpayer Relief Act of 1997 allows taxpayers to exclude up to $250,000 of gain ($500,000 for married couples filing a joint return) realized on the sale or exchange of a principal residence occurring after May 6, 1997.
Mr Maribe,59, of Madiba ward in Mokobeng argued that the Sefhare/Ramokgonami MP had registered to vote at Chadibe even though her principal residence was Gaborone, thereby violating the provisions of the law.

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