See text copied below, from the IRS Regulations under I.R.C. Section 121.
In the case of a taxpayer using more than one property as a residence, whether property is used by the taxpayer as the taxpayerâ€™s principal residence depends upon all the facts and circumstances.
If a taxpayer alternates between 2 properties, using each as a residence for successive periods of time, the property that the taxpayer uses a majority of the time during the year ordinarily will be considered the taxpayerâ€™s principal residence.
In addition to the taxpayerâ€™s use of the property, relevant factors in determining a taxpayerâ€™s principal residence, include, but are not limited to:
(i) The taxpayerâ€™s place of employment;
(ii) The principal place of abode of the taxpayerâ€™s family members;
(iii) The address listed on the taxpayerâ€™s federal and state tax returns, driverâ€™s license, automobile registration, and voter registration card;
(iv) The taxpayerâ€™s mailing address for bills and correspondence;
(v) The location of the taxpayerâ€™s banks; and
(vi) The location of religious organizations and recreational clubs with which the taxpayer is affiliated.
Having said that, a US citizen in the military does not reflect his primary place of residence by assignment location. If you buy a new home and it is to becomes your primary residence (ie not a rental) then you have no problem. If you rent it out, it is an investment property and you clearly can't live there and thus it is a "secondary" property.
To take advantage of your VA benefit, I suggest you wait until you are ready to come home and buy your "new" primary residence. The good prices will be with us a little longer, so you have time.
Greater Phoenix/ Central Arizona
Thank you for your post.
I can tell you 100% that the VA is very specific about their requirements ....a couple of initial questions typically asked are ....are you active duty and for how much longer (income requirement)? Do you have a regular income that can be shown as reported in the US ...where is your income coming from?
There are other specifics as well and I would be happy to chat with your further at your convenience.
Please give me a call anytime or email me at firstname.lastname@example.org - I look forward to hearing from you.
(928) 607-1983 direct
I strongly recommend talking with a tax professional to get the most accurate money saving advice.
Best regards, Dave
David Westall, Realtor
Tahoe Riverfront Realty, Inc.