HomePath "Owner Occupant" Policy

[Matthew T.]

I had a question for someone who knows about "HomePath" properties. I'm writing in regards to the "Owner Occupant" policy for HomePath properties that have the "First Look" title. How long does a person have to reside in the home before he or she can use the property as an investment or rental?

Any information would be greatly appreciated. Thank you!

[Stephen Underhill]

Matthew Terry here is the requirements for primary residency from IRS publication...trying to subvert that rule puts you in a risky situation that you do not want to have to defend.

PRINCIPAL RESIDENCE.
In the case of a taxpayer using more than one property as a residence, whether property is used by the taxpayer as the taxpayer’s principal residence depends upon all the facts and circumstances.

If a taxpayer alternates between 2 properties, using each as a residence for successive periods of time, the property that the taxpayer uses a majority of the time during the year ordinarily will be considered the taxpayer’s principal residence.

In addition to the taxpayer’s use of the property, 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.