Principal Residence

AAA

DEFINITION of 'Principal Residence'

The primary location that a person inhabits. It doesn't matter whether it is a house, apartment, trailer or boat, as long as it is where you live most of the time.

INVESTOPEDIA EXPLAINS 'Principal Residence'

You can usually avoid capital gains on the sale of your principal residence, provided you buy another place of equal or greater value that is going to become your new residence.

RELATED TERMS
  1. Qualified Personal Residence Trust ...

    A specific type of trust that allows its creator to remove a ...
  2. IRS Publication 523

    A document published by the Internal Revenue Service (IRS) that ...
  3. Foreign Housing Exclusion And Deduction

    An allowance for taxpayers who live and work in a foreign country ...
  4. Deferred Gain On Sale Of Home

    An obsolete tax law that applied to homeowners before May 7, ...
  5. Section 1031

    A section of the U.S. Internal Revenue Service Code that allows ...
  6. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
Related Articles
  1. 10 Sources Of Nontaxable Income
    Taxes

    10 Sources Of Nontaxable Income

  2. Cut Commissions With
    Home & Auto

    Cut Commissions With "For Sale By Owner" ...

  3. Will Your Home Sale Leave You With Tax ...
    Taxes

    Will Your Home Sale Leave You With Tax ...

  4. Get Through Divorce With Your Finances ...
    Budgeting

    Get Through Divorce With Your Finances ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center