Main Home

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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.

Main Home

See "principal residence," defined elsewhere in this glossary.
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References in periodicals archive ?
1034 to allow the deferral of gain on the sale of a principal residence individually to a couple who sell their jointly-owned residence and invest his or her one-half interest in separate principal residences within the two-year window allowed by IRC Sec.
Taxpayers who sell their principal residences and move into vacation homes that they previously purchased may be able to defer the gain on the sale of the principal residence.
The AJCA also restricts SUV expensing, charitable contributions of vehicles and the gain exclusion for principal residences acquired in like-kind exchanges.
When one or both individuals who decide to marry already own principal residences, they need to consider the effects the gain deferral and/or exclusion rules will have on the sale of one or both of these residences.
They may take a Sec, 121 exclusion related to their separately owned principal residences up to $250,000 each; see Regs.
The amended section provides a great opportunity for taxpayers willing to pack and move when they have a realized gain on the sale of their principal residences, but not more often than once every two years.
The Revenue Reconciliation Act of 1993 sought to reduce the tax liability of individuals who receive insurance proceeds for homes and contents destroyed in presidentially declared disaster areas by expanding the involuntary conversion treatment to include principal residences.
A related provision provided that real estate reporting persons will not be required to file Forms 1099-S, Proceeds From Real Estate Transactions, for sales or exchanges of principal residences with a sales price of $250,000 or less for a single individual ($500,000 for married individuals), so long as the reporting person obtains a certification from the seller in a form acceptable to the Treasury that the property is the seller's principal residence and the full amount of the gain on such sale or exchange can be excluded.
Walker said the AICPA supports this policy, but that it "should be available for use only to offset future or past gains on sales of principal residences.
Other taxpayers will find little or no tax benefit under the TRA '97 on the sale of their principal residences (e.
Two major tax breaks are available for taxpayers who sell their principal residences.
1034(c)(4) and (d), a taxpayer who sells two or more principal residences within a two-year period must calculate the gain deferral on the sale of the first residence by treating the last residence purchased during that period as the replacement residence; thus, gain on the sale of any intermediate residence must be recognized.

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