A primary residence, also referred to as a principal residence, is the home you live in for the majority of the year. If you own one property and live there the majority of the year, that’s considered to be your primary residence. If you own multiple properties, the IRS utilizes a “facts and circumstances” test to determine primary residence.
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The IRS indicates that the most important factor in determining your “primary residence” is where you spend the most time. For many taxpayers, though, that may be difficult to determine, particularly for taxpayers who have more than one home. However, if you live in more than one home, there are other factors to consider. These factors are:
The address where you are registered to vote.
The address you use on your federal and state tax returns.
The address listed on your driver’s license or car registration.
The address on file with the U.S Postal Service.
The length of time any of these factors have applied to that particular dwelling may also be an influencing factor in determining a primary residence for tax purposes. The address where you have voted and filed your returns from for many years is less likely to be questioned than one you used for one or two years. In addition, the IRS takes into consideration as that residence close to:
Where you work.
Where you bank.
Where your family members live.
Where you are part of a club or organization.
Some situations in which you might need to consider these factors are:
You and your spouse “summer” in one state and “winter” in another state; you also split your time between states and travel during the other months. In this situation, you may need to count actual days/nights spent in each state or consider the other factors, such as the state in which you are registered to vote or the address on your driver’s licenses, OR
You and your spouse live in separate states and, therefore, separate residences the entire year, visiting each other on the weekends. In this situation, you may each have your own primary residence, in two different states.
In summary, the IRS generally considers your primary residence to be the home where you spend the most time. If you split your time between more than one house and are trying to determine your eligibility to exclude gain from a home sale from your taxable income, be sure to take a look at the numerous factors the IRS considers when determining your primary residence.
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why are you asking?
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you also have to be concerned about state income taxes. in the state where you rent and the state with the house you own if either or both have a state income tax. they may have a rule for residency that would likey differ from what the IRS would regard as your state of domicile.
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you should consult with a tax pro that can probe deeper into your situation
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