“Hi Gary, My wife and I want to sell our home in La Jolla. We live part of the year in Phoenix and part in San Diego. We want to get the $500,000 principal residence exclusion. How do we know which one is my principal residence?”
***ANSWER:
According to industry journal California Real Estate Magazine, the determination of principal residence depends on the weighing of many factors, including:
– Where you live and how long you live there
– Place of employment
– Principal home of your family members
– Address listed on your state and federal tax returns, driver’s license, auto registration, and voter registration
– Mailing address for bills and correspondence
– Location of banks
– Location of places of worship and recreational clubs you belong to
The magazine doesn’t mention this, but I believe there are different rules for active military personnel.
I strongly suggest you consult with your tax professional.
