Legal Question in Real Estate Law in Georgia

Change primary residence to second home.

My company is based in Georgia, I work in California. My primary residence is in Georgia, I rent in California. I have relatives living in the house (no rent) in Georgia. I'm considering buying a house in California and I am trying to figure out how to the financing. Since I will be occupying the house in California it will be my primary residence. Can I designate my house in Georgia as my second home if I have someone living there or would I have to refinance it as an investment property? What are the occupancy requirements and tax ramifications for each?


Asked on 4/23/09, 11:45 am

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

Re: Change primary residence to second home.

I do not believe yuo have to file any forms declaring a change in where you primary residence is as that is a matter of fact and not election. You primary residence is where you live most of the time. You do not need to refinance but your are technically supposed t notify your lender as they normally charge .25-.5% higher on a loan for an investment than a residence. You can now vote in California and claim the homeowners exemption on you state taxes [but probably have to drop the same in Georgia]. You are subject to California taxes [on income earned in California you are normally charged no matter where your primary residence is]. Technically, the IRS can charge you imputed rent on the house in Georgia.

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Answered on 4/23/09, 1:00 pm


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