Bought 2nd home for job, kept first home but...

[ngneer]

I took a new job earlier in 2024, rented for a couple of months, then purchased a second home where I lived the majority of the year, going to work 5 days a week, and going back to my first home just on certain weekends.  My wife did eventually move in with me to the second home near my work after she retired.  I understand the rule that I can only declare one primary home, so am I required to declare the second home I bought to be closer to my job as my primary home because we lived there most of the year, or can I keep my first home as my primary home given we retained the address of our first home on our driver's licenses and still get mail delivered to our first home (as our adult daughter lives there to collect our mail and mind the house)?  Also just wondering what the tax implications are as a result, if any.  Thanks in advance.

[rjs · Accepted solution]

You don't declare a primary home on your tax return. The address that you enter on your federal tax return is a mailing address where you want the IRS to send anything that they might mail to you. It does not have to be your primary home.

If you claim itemized deductions you can deduct mortgage interest on your primary home and one other home. If you deduct mortgage interest on two homes, it doesn't matter which one is your primary home. You can deduct real estate tax on any property that you own in the United States, whether or not it's your primary home.

If you sell a home, your eligibility for the Section 121 exclusion of gain depends on whether the home that you sold was your primary home for 2 or more years out of the 5 years preceding the sale.

If your two homes are in different states it might affect your state taxes. Some states have tax benefits of various kinds for homeowners, which might depend on whether a home is your primary home. You would have to check the rules for your state.

In general, which home is your primary home is going to be determined by facts and circumstances. It's not something you can declare or choose. The rules for determining your primary home might be different for different tax considerations and for different states.