Principal Residence

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.

BREAKING DOWN '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.

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RELATED FAQS
  1. Do we have to pay capital gains tax?

    My wife and I are 83 years old. We will sell our home for about $400,000. Will we pay capital gains tax when moving to an ... Read Answer >>
  2. If I haven't realized capital gains from selling a primary residence in the last ...

    My husband and I owned a home, sold it in 2013, and now we are considering buying a home but are uncertain of whether we ... Read Answer >>
  3. Do we have to pay capital gains tax on the sale of our property?

    We owned our primary residence for 3 years and recently sold it.  ... Read Answer >>
  4. Do I have to pay capital gains tax when I sell my home?

    My husband and I were divorced in 2011. We owned our house jointly and he lived there after the divorce until his death in ... Read Answer >>
  5. Will I pay capital gains tax on the profits from the sale of my home?

    I am single and have lived in my house for 30 years. Does it make a difference if I rent or buy after selling the house? ... Read Answer >>
  6. Is it possible to make my primary residence in FL (I currently live in NY) if I have ...

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