What are the rules for a principal residence?

Principal residence requirement. The rules define the term residence fairly broadly—it includes a houseboat, house trailer or stock held by a tenant-stockholder in a cooperative housing corporation. Personal property that is not a fixture under local law will not qualify as a residence.

Can a deceased spouse use a home as a principal residence?

The IRS has issued proposed regulations to clarify how these rules work in certain situations. A TAXPAYER IS CONSIDERED TO HAVE OWNED and used a home as a principal residence during the time his or her deceased spouse used the home as a principal residence.

What does MLS IDX mean for Florida Keys?

MLS Internet Data Exchange (IDX) information is provided exclusively for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing, and that the data is deemed reliable but is not guaranteed accurate by the Florida Keys Board of Realtors.

What makes a home the principal residence for a couple?

Your principal residence is the place where you (and your spouse if you’re filing jointly and claiming the $500,000 exclusion for couples) live. You don’t have to spend every minute in your home for it to be your principal residence. Short absences are permitted—for example,…

What are the rules for selling your home in Florida?

1 You have lived in the home as your principal residence for two out of the last five years. The two year residency test need not be “continuous.” 2 You have not sold or exchanged another home during the two years preceding the sale. 3 The method of holding title does not matter. Title can even be held in a revocable trust.

When do you qualify for the principal residence exclusion?

To qualify for the exclusion, you must have used the home you sell as your principal residence for at least two of the five years prior to the sale. Your principal residence is the place where you (and your spouse if you’re filing jointly and claiming the $500,000 exclusion for couples) live.

How does a short sale work in real estate?

A short sale occurs when a property is sold at a price lower than the amount the homeowner owes on the mortgage, and the homeowner’s mortgage lender(s) agrees to the “short” payoff.

When to use the two year home sale exclusion?

This would occur, for example, if you sell before you have lived in the home for two years, or if you have already used the exclusion for another home less than two years prior to this sale. If this happens, you may still qualify for a partial exclusion if you have a good excuse for selling the property.

How long does it take to re-establish credit after a foreclosure?

Fannie Mae and Freddie Mac (conventional loans) require a seven-year waiting period (up from 5 years) for re-establishing credit following completion of the foreclosure action (as little as two years for a short sale).

How long after a foreclosure can you purchase a home?

The FHA allows borrowers to purchase a home just three years after a foreclosure notice assuming you’ve kept credit clean since the negative action; for VA loans it’s a waiting period of two years. Fannie Mae and Freddie Mac ( conventional loans) require a seven-year waiting period (up from 5 years)…