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Updated over 12 years ago on . Most recent reply
![George Eliot's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/112538/1696649522-avatar-georgeeliot.jpg?twic=v1/output=image/cover=128x128&v=2)
Significance of "principal residence" question on QuitClaim deed?
Hi everyone,
I'm a soon-to-be first time homeowner once my father gives me a house he owns via a quitclaim deed. I am just wondering if there are any legal/financial (as far as taxes go) implications in answering "Yes" or "No" for "This property is intended as my principal residence."
I am planning on renting it once I make a few improvements on it, so should I select "No"? I am concerned because in case I want to sell the house at some point, I'd like to reduce my capital gains taxes as much as possible.
Thanks very much for any advice you can give.
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![Steve Babiak's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/32109/1621365972-avatar-stevebabiak.jpg?twic=v1/output=image/cover=128x128&v=2)
A principal residence can get a homestead discount on the property taxes in some jurisdictions. You're starting to let some money interfere with honesty here ...