Capital Gains Exclusions
What to know before you deduct.
According to the IRS, a principal residence can take many forms: conventional home, condominium, mobile home, house trailer, tenant-stockholder cooperative housing unit—even a boat, as long as it has sleeping, cooking and sanitary facilities. If you split your time between two residences, it’s defined as the home you own and use as a residence for “a majority of the time during the year.” Other considerations: l the location of your property in relation to your place of employment. l the location where your family members reside. l the address you use on your federal and state tax returns, driver’s license, automobile registration and voter registration card. l the mailing address you use predominantly for bills and correspondence. l the location of your banks. l the location of your “religious organizations and recreational clubs.”