@Kepabe04 wrote:
I will be selling my second home that I have owned over the last 9 years. For the last 5 years I have used this home as my primary residence during the week since it was close to my new job. Do I still need to pay any capital gains?
You are calling this your "second home" while the Section 121 exclusion applies to your principal residence. However, if you meet the criteria set forth below, the home will qualify as your principal residence for purposes of exclusion from gain under Section 121.
You should make the final decision, however, after consulting with a tax professional.
In the case of a taxpayer using more than one property as a residence, whether the property is used by the taxpayer as the taxpayer's principal residence depends upon all the facts and circumstances. If a taxpayer alternates between 2 properties, using each as a residence for successive periods of time, the property that the taxpayer uses a majority of the time during the year ordinarily will be considered the taxpayer's principal residence. In addition to the taxpayer's use of the property, relevant factors in determining a taxpayer's principal residence, include, but are not limited to:
(i) The taxpayer's place of employment;
(ii) The principal place of abode of the taxpayer's family members;
(iii) The address listed on the taxpayer's federal and state tax returns, driver's license, automobile registration, and voter registration card;
(iv) The taxpayer's mailing address for bills and correspondence;
(v) The location of the taxpayer's banks; and
(vi) The location of religious organizations and recreational clubs with which the taxpayer is affiliated.
Treas. Reg. §1.121-1(b)(2)
