Does Voter Regis Determine Primary Residence?
I've lived in Boulder for years, but just bought a HUD house in Pueblo, as an owner occupant, and split my time between the 2 places, living in this new house, renting in Boulder, and I plan to buy more properties in lower-cost Pueblo, to fix&flip. I haven't owned any property for 3 years, and want to resell this first Pueblo house taxfree after 2 years, so just wonder if I can be registered to vote in Boulder, or IF I should register now in Pueblo; i.e. IS voter registration a determinant for primary residency as it pertains to the capital gains tax exemption status at the 2 year point, which is important? If so I will change it . OR, is it elective, or something else? THX
I think you'd get more action& response on thisquestion in Tax & Tax Strategy Forum so I'm moving it there.
The main question to answer is: In which house do you spend most of your time during the year? This will be the main test.
If you spend 5 months in Boulder and 7 months in Pueblo during the year, then you may say that your primary residence is Pueblo.
If the timeline were equally split between the two locations, then to reinforce your claim that Pueblo is your primary residence, you would do things that any reasonable person would do who establishes a primary residence in a new location.
For example, as a reasonable person, you would:- register to vote in Pueblo
- get a new driver's license with your Pueblo address
- change your mailing address to Pueblo
- file a state and federal tax return from your Pueblo addressYou say that you divide your time between the two places. To qualify for the capital gains tax exclusion on the sale of your primary residence, you must both OWN and OCCUPY your primary residence for an aggregate of two years of the five years prior to the sale. If you are dividing your time between two homes, then you may not meet the two year occupancy test at the same time as you meet the two years of ownership test.