Primary Residence

Your house is your primary abode (also known as a principal residence). If you live in a house, condo, or townhome for the bulk of the year and can prove it, it's your primary residence, and you might qualify for a reduced mortgage rate. Your main house may also qualify for income tax benefits, such as a deduction for mortgage interest paid and an exclusion from capital gains tax when you sell it. Because of the tax advantages, the IRS has established some clear instructions to assist you in determining whether your house qualifies as a principal residence.