Capital Gains Exclusions

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Real Estate

Capital Gains Exclusions

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:

Location of your property in relation to your place of employment.

Location where your family members reside.

Address you use on your federal and state tax returns, driver’s license, automobile registration and voter registration card.

Mailing address you use predominantly for bills and correspondence.

The location of your banks.

Location of your “religious organizations and recreational clubs.”