What PRINCIPAL RESIDENCE means: A principal residence is generally the home in which a taxoayer lives most of the time. A taxpayer who sells a principal residence that he or she owned and lived in for at least two years in the five-year period ending on the date of sale may be able to exclude up to $250,000 ($500,000 on a joint return if both spouses used the home as a principal residence for the required time) of gain from the sale. A taxpayer can have only one principal residence at any time. A principal residence can be a home, condominium, cooperative apartment, townhouse, mobile home, or houseboat.
- Definition Points:
- Dictionary fee (one-time charge paid for the use of money) that a buyer generally may deduct as interest. This amount can generally be deducted in full if paid for the purchase or improvement of a principal principal residence definition.
- Definition Pension/Annuity Starting Date:
- Dictionary The first day of the first period for which an amount is due as a pension/annuity payment under the contract principal residence explain.
- Definition Penalties:
- Dictionary amounts that the IRS may assess at a statutory rate as an addition to a tax deficiency and interest. The tax Code provides for penalties for various infractions, such as underpayment of estimated tax principal residence what is.
- Definition Partnership:
- Dictionary in which two or more persons join their money and skills in conducting the business. Partnerships must file a return but are not subject to tax. Each partner reports his or her share of the principal residence meaning.
How works Principal Residence meaning in Tax definitions P .
