What is a principal residence?

The principal residence is by definition the actual residential accommodation of the taxpayer. A residence is considered as principal from the moment when the taxpayer and his family live there and where the center of material and professional interests is there.

Choice of main residence

The choice of the main residence is an important decision in matters of taxation. The couples will have to choose a common residence, and will be able to study all the possibilities of tax deductions such as expenses related to the residence and its location. In addition to the actual costs, the choice of the main residence may or may not make it possible to benefit from tax credits for expenses in favor of the environment and assistance to people, or for loan interest.

Can we have two main residences?

No, it is absolutely impossible to have two main residences. People who own several residences should therefore think carefully about which one to designate as a second home, as this entails a number of changes, especially with regard to taxes. Click here https://companyromania.com/personal-residence/

It is however possible, for certain employees, to deduct costs for dual residence. This means that they are obliged for professional reasons to live in a residence other than their main residence. The costs of the residence used for professional purposes can then be partially deducted from the income taken into account for income tax. For this, it is necessary to justify the obligation to maintain two residences.

How can you justify your main residence?

Individuals may be required to prove that the residence they occupy is their main residence, for example, to show that the tax advantages from which they benefit are valid, or to be exempt from capital gains tax in the event of resale. .

It is possible to provide official documents (bank, insurance, etc.) which are sent to this domicile to show that it is their main residence. In the event of a change of secondary residence, providing proof of the move (invoice from the mover, purchase of furniture, mail forwarding certificates) can also be useful. Proof of consumption is also possible: water, gas, electricity, heating, Internet, landline telephone, in order to show that its consumption corresponds to a permanent installation in the home. Home insurance stating that it is the main residence or the mention on the council tax notice are also elements that can be played. Certificates from a notary, the mayor of the municipality or neighbors may also be included in the file.

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