What is the primary residence?
The primary residence is the main place that one lives for most of the year or a permanent home to which he is planned to return after the temporary stay elsewhere. It can be a house or apartment that a person owns or rental unit. The concept has a simple definition and different legal definitions if it is used as a requirement for certain programs or benefits. Most often, the qualification of dwellings as primary residence is important for mortgages, participation in government loans and using certain tax deductions. The location of the primary residence is also important for the determination of state stay and for qualifications for benefits. The classification of the property is usually a prerequisite for obtaining a loan. This is because the laws to be obtained after the assets after the default setting of the property generating income or holiday. The creditors also feel that debtors are more likely to pay a mortgage for their main stay, reduce the risk and accompanying interest rate for the purpose of providing a loan. Loan AgreementAscuts that the mortgage is by default if the creditor realizes that the debtor no longer uses the property in a specified way.
Many mortgages of residential mortgages are guaranteed by government agencies that require a loan to be only for primary residence. These programs exist to encourage house ownership and do not support the purchase of other houses or invest in real estate. Some government programs also provide families to help the loan. The programs that provide financial assistance also specify the number of years that the family must live in the house, otherwise they have to repay the money.
Classification also domums tax consequences. National and local governments usually provide tax deductions in the main house that the homeowner can take on their income tax. This includes real estate tax adjustments, mortgage interest, improvement of energy efficiency and depreciation. Local real estate taxes often have a displayozici určité osvobození, pokud majitel domu kvalifikuje pro program a žije v domě po většinu roku, jako je sleva seniorů na daně z nemovitostí.
Another important use of classification is to determine a local stay. Locations tax people on the basis of whether they are considered permanent or temporary inhabitants. Residence is also important for setting qualifications for local advantages. Například student musí mít primární bydliště ve státě, aby se kvalifikoval pro snížené školné na státních vysokých školách a univerzitách v USA.