A main residence, also known as a primary residence or principal residence, is a financial term used to describe the primary dwelling where an individual or family lives for the majority of the time. This residence is typically the owner’s main home and can be a house, apartment, condominium, or any other type of residential property.
In the context of personal finance and taxation, the main residence is important because it often qualifies for various tax benefits, exemptions, and deductions, depending on the jurisdiction. For example, in many countries, capital gains from the sale of a main residence may be partially or fully exempt from taxes, and mortgage interest on a primary residence might be tax-deductible.
To qualify as a main residence, the property typically needs to meet certain criteria, such as being occupied by the owner for a minimum number of days per year or being the address used for official documents like tax returns, voter registration, or driver’s licenses. These criteria can vary by jurisdiction.
« Back to Glossary Index