Principal Residence The primary location that a person inhabits. It doesn't matter whether it is a house, apartment, trailer or boat, as long as it is where you live most of the time. Investopedia Says: You can usually avoid capital gains on the sale of your principal residence, provided you buy another place of equal or greater value that is going to become your new residence. Related Terms: Capital Gain Land Land Value Main Home Section 1031 Vacation Home |