Full Time RVer with Property in State Other than Legal Residence

by LindaB
(Custer)

We are full time RV'ers with legal residence in South Dakota. We own a park model in Arizona.

We are interested in the tax ramifications of selling this property. Can we consider this our principal residence if we live in it for two winter seasons out of five? The IRS states that if you live in your principal residence for 2 out of 5 years then you will not need to pay capital gains on any profit. Right now we are full timers and do not live in the park model, but would move into it so that we could sell it in 2 years. In summary, mainly we would like to know if we live in a residence in a different state that our legal residence, can that be considered our "principal" residence?

Thanks,

Linda

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Full Time RVer with Property in State Other than Legal Residence

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Oct 11, 2011

Complex Situation
by: Anonymous

I agree this is a really complex situation that would benefit from talking with an accountant. If you live in the Arizona home for 2 winters - you might put your SD residency at risk, because AZ might decide you're a resident of AZ.

If taxable gain weren't an issue, then the process of selling it is simple - it's no different than a non-RVer who lives in one state but owns a vacation home in another; he can sell the vacation home without impacting his residency.

Mar 17, 2011

Tax Situation
by: happy harold

This sounds like you would be better off working with a tax consultant or atty rather than rely on possible answers you might be getting here.

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