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Determining your main home for the bright-line test

Abhi Kumar

If you own multiple properties that you use as residences, determining which one qualifies as your "main home" for the purpose of the bright-line test can be crucial. Here's a guide to help you understand the criteria and make the right determination.


Understanding the Main Home Concept

You can only have one main home at any given time. The main home is defined as the property with which you have the greatest connection, meaning the home that holds the most significant or important bond to you. This is not a subjective choice but rather an objective assessment based on various factors.


Key Factors to Consider

When determining which home you have the greatest connection with, consider the following factors:

  1. Time Spent at the Home: how much time do you spend living in each home? The more time you spend at a particular residence, the stronger the connection.

  2. Location of Immediate Family: where does your immediate family live? The presence of your family can significantly influence which home is considered your main residence.

  3. Social Ties: where are your social ties strongest? Consider where your close friends and community activities are centered.

  4. Employment and Economic Ties: where are your job, business interests, and economic activities based? The location of your primary employment or business operations can be a major factor.

  5. Location of Personal Property: where do you keep the majority of your personal belongings? The home housing most of your personal property often indicates your main residence.


Special Case: Holiday Homes

If you own a property that you use as a residence and another that you use as a holiday home, the greatest connection test does not apply. In this case, the holiday home is excluded from consideration as it is not used as a primary residence. Your main home will automatically be the one you use as a residence.


Making the Decision

Assessing which home has the greatest connection requires looking at your overall circumstances. It's essential to objectively evaluate all the relevant factors listed above to determine which home qualifies as your main residence for the bright-line test.

By understanding these criteria and carefully evaluating your situation, you can ensure that you correctly identify your main home and comply with the regulations governing the bright-line test.

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