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Principal Residence

calender iconUpdated on January 25, 2023
direct tax
taxation

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A principal residence is a home that is primarily used as the owner’s primary dwelling place. It is typically the owner’s primary place of abode and where they spend the majority of their time.

Key characteristics of a principal residence:

  • Primary residence: It is the owner’s main home, where they legally reside.
  • Primary dwelling place: It is the place where the owner spends the majority of their time and where they are legally domiciled.
  • Primary address: It is the owner’s legal address.
  • Tax purposes: It is used to claim tax deductions and credits for homeowners.
  • Ownership: It is owned by an individual or a family.

Examples of primary residences:

  • Houses
  • Apartments
  • Townhouses
  • Mobile homes
  • Cottages

Exclusions:

  • Secondary homes
  • Rental properties
  • Vacation homes
  • Investment properties

Note: The definition of a principal residence can vary depending on legal and tax contexts.

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