Principal Residence

Principal Residence means:
the place where a person lives most of the time. A principal residence may be a single-family house, condominium, trailer, or houseboat. To defer capital gains taxes on the profit from a home sold, it must be replaced by another home purchased at a price equal to or greater than the adjusted sales price of the old home, and the homes sold and purchased must be used as the taxpayer's principal residences. Temporarily renting out a previous residence before its sale does not terminate its status as a taxpayer's principal residence. Former IRC (check if this IRC provision is current here) §25.

See also other Tax Terms and Definitions in U.S.A.

home sale exemption.

See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.

Description and Definition of Principal Residence

Your primary home. Your principal residence may be a single or multi family house, condominium, mobile home, or houseboat, as long as it is the place where you live most of the time.

Resources

See Also

Further Reading

• Principal Residence in the West's Tax Law Dictionary
• Principal Residence in “A Dictionary of Taxation”