Capital Gains Exclusions It is always best to chat with your accountant before listing your home. Knowing if there will be tax consequences for you later could influence your timing to sell. If you had a down payment assistance grant you may need to pay that back from your proceeds. One thing we can be certain of is the IRS changing the rules frequently!! Determining your principal residence according to the IRS for tax purposes if you own more than one home can be tricky, but the IRS continues to refine the rules. First of all, principal residence can take many forms: conventional home, condominium, mobile home, house trailer, tenant-stockholder cooperative housing unit—even a boat, as l…