Reporting The Sale of A Primary Residence
In 2002, I sold a property that originally was purchased as a second home. In recent years my wife and I have considered the home as our primary residence, and have lived there more than two years.
At taxtime this year, what do I need to do to verify that I lived in the home for more than two of the last five years? Is there a particular tax form for this purpose?
Rsnell,
There is no tax form certifying primary residence. There are things that you do, however, to establish your domicile as your primary residence.
For this 2nd house, did you:
1. Receive mail?
2. Change your driver's license to show this house as your residence?
3. Register to vote in the precinct where this house is located?
4. What address is shown on your tax return for the two years you are claiming this property as your primary residence?
I suspect that if you can adequately show that you occupied the 2nd home as your primary residence for at least two of the last five years, you can comfortably apply the capital gains exclusion on the sale profits.