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Short sale – defining primary residence?

I was wondering, what is considered primary residence. How long do you have to live in the property before you can make use of the new exemption tax law. Short sale specialists tell me just move in and chance your address, there is no time limit minimum. Others tell me two years. I have only owned the property for one year though. I bought the property and it dropped 50% in value! Do I have to pay that even if I file a form 982 for insolvency. I am not claiming bankruptcy though.


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3 Responses to "Short sale – defining primary residence?"

  1. untitled says:
    bout 5 years
  2. wizjp says:
    State specific; different states have different residency requirements. Ask the assessor’s office.
  3. SCH says:
    If you pass the insolvency test you do not have to pay taxes on the property. You state that you owned the property but do not state whether you lived in the property…if you did not live there then it is not your primary residance. But none the less if you pass insolvency you do not have to pay tax on the short amount.

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