J. Ramsay Farah and Elizabeth Farah - Page 16




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               For example, if an individual owns homes in New York and               
          Florida, spending 7 months of the year in the New York home, and            
          5 months in the Florida home, absent facts and circumstances                
          indicating otherwise, the New York home is the individual’s                 
          principal residence for all of the year.  Sec. 1.121-1(b)(4),               
          Example (1), Income Tax Regs.  In contrast, if an individual who            
          owns homes in Maine and Montana, lives in the Maine home for 2              
          years, then lives in the Montana home for 2 years, and then                 
          returns to Maine, each house is her principal residence while she           
          lives there.  Sec. 1.121-1(b)(4), Example (2), Income Tax Regs.             
               In addition to the use of the property, other relevant                 
          factors in determining a taxpayer’s principal residence, include,           
          but are not limited to:                                                     
                    (i) The taxpayer’s place of employment;                           
                    (ii) The principal place of abode of the                          
               taxpayer’s family members;                                             
                    (iii) The address listed on the taxpayer’s federal                
               and state tax returns, driver’s license, automobile                    
               registration, and voter registration card;                             
                    (iv) The taxpayer’s mailing address for bills and                 
               correspondence;                                                        
                    (v) The location of the taxpayer’s banks; and                     
                    (vi) The location of religious organizations and                  
               recreational clubs with which the taxpayer is                          
               affiliated.                                                            
          Sec. 1.121-1(b)(2), Income Tax Regs.                                        








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Last modified: March 27, 2008