principal residence

English - English

Definition of principal residence in English English dictionary: That single residence, if any, which a taxpayer can sell without paying capital gains tax on any appreciation, provided that the taxpayer buys a new principal residence of equal or greater value within a specified time period Topic areas: Fundraising and Financial Sustainability; The home that a taxpayer lives in most of the time during the taxable year; Regular, permanent abode; the place one lives in most of the time May be a single-family house, condominium, trailer, or houseboat To defer capital gain taxes on the profit from a home, the home must be used as the taxpayer's principal residence PRIORITY legal precedence; having preferred status Generally, upon foreclosure, lenders are repaid according to priority; place one lives in most of the time May be a single-family house, condominium, cooperative apartment, trailer, or houseboat In order to defer capital gain taxes on the profit from a home, the home must be used as the taxpayer's principal residence; The dwelling in which a person resides for the majority of the time