Two houses owners

[wanaberetiree]

For those who live in two houses - how do you define what’s a primary and what’s a secondary residence?

And what implications can it have on your taxes and else?

Thx

 

[pb4uski]

For state income tax purposes it is defined based on factors like where you are registered to vote, the address on your driver's license, bank and other financial accounts, where your vehicles are registered, and where you spend the majority of your time, amongst other things.

 

[wanaberetiree]

For state income tax purposes it is defined based on factors like where you are registered to vote, the address on your driver's license, bank and other financial accounts, where your vehicles are registered, and where you spend the majority of your time, amongst other things.

I should’ve mentioned that both houses are in the same state

Thx

 

[pb4uski]

Still might have homestead benefit implications?

 

[Souschef]

We have a slightly different situation. Both residences are in the same county. We are updating the older one to sell it.

 

[retire to nature]

when I moved from another state, CPA asked which one lived more than 6month. And when I sold many houses, they asked residency of days of living. so longer living house would be your primary.

 

[gcgang]

https://www.taxaudit.com/tax-audit-blog/how-does-the-irs-define-primary-residence

Above is decent article on principal residence (PR).

Big tax implications if you sell one of your homes at a gain. Only your PR qualifies for the capital gains exclusion.

Something I didn’t don’t know - article states that a married couple could have separate PRs, filing taxes with different states. Not sure how that affects PR sale. Maybe have each spouse separately own each house?

 

[retire to nature]

when I moved from another state, CPA asked which one lived more than 6month. And when I sold many houses, they asked residency of days of living. so longer living house would be your primary.

I meant more than 6month/each year.