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Many readers of the newsletter alternate between living on the Mainland and in Hawaii. There are a number of factors used to establish the primary residence for such owners, such as: (1) the length of occupancy in the two homes; (2) the place of employment; (3) the principal place of abode for family members; (4) the address used on the taxpayer’s federal and state tax returns; (5) the address where the taxpayer is registered to vote; (6) the location of taxpayer’s bank(s); (7) the address used for automobile and driver’s license registrations; and (8) the location of the taxpayer’s religious organizations and recreational clubs.
Our experience indicates that most absentee owners that alternate between living in Hawaii and on the Mainland consider their Mainland home to be their primary residence. If the length of your stay in Hawaii and on the Mainland were reasonably similar, you might want to qualify for 24 months of occupancy in the Hawaii home. You don’t actually have to be in Hawaii for all 24 months, but you do need to do the things that would qualify the Hawaii home as being your primary residence. Then, you could sell it, claim the $250,000/$500,000 exclusion and shift your primary residence back to the Mainland. It is important to keep in mind, though, that you can only have one primary residence at any given time.
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Establishing a Primary Residence
Click here to view the entire newsletter.
Many readers of the newsletter alternate between living on the Mainland and in Hawaii. There are a number of factors used to establish the primary residence for such owners, such as: (1) the length of occupancy in the two homes; (2) the place of employment; (3) the principal place of abode for family members; (4) the address used on the taxpayer’s federal and state tax returns; (5) the address where the taxpayer is registered to vote; (6) the location of taxpayer’s bank(s); (7) the address used for automobile and driver’s license registrations; and (8) the location of the taxpayer’s religious organizations and recreational clubs.
Our experience indicates that most absentee owners that alternate between living in Hawaii and on the Mainland consider their Mainland home to be their primary residence. If the length of your stay in Hawaii and on the Mainland were reasonably similar, you might want to qualify for 24 months of occupancy in the Hawaii home. You don’t actually have to be in Hawaii for all 24 months, but you do need to do the things that would qualify the Hawaii home as being your primary residence. Then, you could sell it, claim the $250,000/$500,000 exclusion and shift your primary residence back to the Mainland. It is important to keep in mind, though, that you can only have one primary residence at any given time.
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