Publication 523 |
2001 Tax Year |
Chapter 1 Main Home
This chapter explains the term "main home."
Usually, the home you live in most of the time is your main home
and can be a:
- House,
- Houseboat,
- Mobile home,
- Cooperative apartment, or
- Condominium.
To exclude gain under the rules in chapter 2, you generally
must have owned and lived in the property as your main home for at
least 2 years during the 5-year period ending on the date of sale.
Land.
If you sell the land on which your main home is located, but not
the house itself, you cannot exclude any gain you have from the sale
of the land.
Example.
On March 2, 2001, you sell the land on which your main home is
located. You buy another piece of land and move your house to it. This
sale is not considered a sale of your main home, and you cannot
exclude any gain on the sale of the land.
More than one home.
If you have more than one home, you can exclude gain only from the
sale of your main home. You must include in income gain from the sale
of any other home. If you have two homes and live in both of them,
your main home is ordinarily the one you live in most of the time.
Example 1.
You own and live in a house in the city. You also own a beach
house, which you use during the summer months. The house in the city
is your main home.
Example 2.
You own a house, but you live in another house that you rent. The
rented house is your main home.
Property used partly as your main home.
If you use only part of the property as your main home, the rules
discussed in this publication apply only to the gain or loss on the
sale of that part of the property. For details, see Business Use
or Rental of Home in chapter 2.
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