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Read section 1.121-1(b)2: (b) Residence—(1) In general. Whether property is used by the taxpayer as the taxpayer's residence depends upon all the facts and circumstances. A property used by the taxpayer as the taxpayer's residence may include a houseboat, a house trailer, or the house or apartment that the taxpayer is entitled to occupy as a tenant-stockholder in a cooperative housing corporation (as those terms are defined in section 216(b)(1) and (2)). Property used by the taxpayer as the taxpayer's residence does not include personal property that is not a fixture under local law. (2) Principal residence. In the case of a taxpayer using more than one property as a residence, whether property is used by the taxpayer as the taxpayer's principal residence depends upon all the facts and circumstances. If a taxpayer alternates between 2 properties, using each as a residence for successive periods of time, the property that the taxpayer uses a majority of the time during the year ordinarily will be considered the taxpayer's principal residence. In addition to the taxpayer's use of the property, relevant factors in determining a taxpayer's principal residence, include, but are not limited to— (i) The taxpayer's place of employment; (ii) The principal place of abode of the taxpayer's family members; (iii) The address listed on the taxpayer's federal and state tax returns, driver's license, automobile registration, and voter registration card; (iv) The taxpayer's mailing address for bills and correspondence; (v) The location of the taxpayer's banks; and (vi) The location of religious organizations and recreational clubs with which the taxpayer is affiliated.

Because I, personally, have the same situation, I agree with all of the above. Mine are both in the same state and the older we get, the more time we spend at the second home. However, our mail, our drivers licenses, our voting rights, our property tax credit, etc are all at the main (original) home. This is also where I maintain my main office and there has never been any doubt in my mind. In case of a sale, this would be the house that qualifies for the CG credit.; even though either one possibly could.

Definitely

Excerpts from the report that caught my attention: https://www.taxpayeradvocate.irs.gov/reports/2023-annual-report-to-congress/ "Extraordinary delays in assisting victims of identity theft. At the end of fiscal year (FY) 2023, nearly half a million taxpayers with cases pending in the IRS’s Identity Theft Victims Assistance (IDTVA) unit were waiting an average of almost 19 months for the agency to resolve their identity theft problems. " "Delays in processing amended tax returns and taxpayer correspondence. Despite the IRS’s success in eliminating its backlog of paper-filed Forms 1040, backlogs in processing amended individual income tax returns (Forms 1040-X), amended business tax returns and correspondence continued. At the end of calendar year 2019 (the most recent pre-pandemic year), the IRS’s backlog of unprocessed amended returns stood at 0.5 million. By comparison, the backlog as of late October 2023 was 1.9 million – nearly four times as much. Taxpayer correspondence and related cases more than doubled over the same period, from 1.9 million to 4.3 million. In addition, the percentage of correspondence cases classified as “overage” in 2023 reached its highest level in recent years, with nearly 70% of pending cases exceeding normal processing times as of late October. " For the 2023 filing season, Treasury set a goal of achieving an 85% “Level of Service” (LOS) on the IRS’s toll-free telephone lines, and that required staffing the telephone lines at levels capable of handling most calls during peak periods. However, the report says that meant CSRs often were “simply sitting around waiting for the phone to ring.” During the 2023 filing season alone, CSRs spent 1.27 million hours (34% of their time) waiting to receive calls. That translates to more than 650 unproductive staff years in which these employees could have been processing paper and reducing response times for amended returns and correspondence." It sounds llke the IRS has been playing "Whack A Mole" They shifted staff to answering the phones since that was what everyone was upset about.

Copied from the instructions for Form 1095 C: "An ALE member must furnish a Form 1095-C to each of its full-time employees by March 1, 2024, for the 2023 calendar year. See Extensions of time to furnish statements to recipients . Which means that clients wanting their return prepared early very well may not have received their Form 1095 C yet.

Be careful if it looks like one house is their principal residence, but they told their state &/or locality that the other house qualifies for a homestead credit or senior tax relief or.... Is this a new/potential client? If so, you might want to decline if you don't feel they are giving you the whole story. If this is a continuing client, you probably have a good feel for which is their principal residence. What address was on their tax returns? Other official documents? Mailing address for important things like bills? Does their insurance company list a principal residence and a second home; an address where their cars are garaged? How far apart are their houses? Do they go to doctors, church, recreation near one house. Which house has their good furniture, artwork, photo albums, near & dear stuff? GLG gave you the code section.

Are they in the same state or different states? If different, the state they file tax as a resident, where cars are plated, voter registration, etc. should tell you which is main home. Also, many states offer some kind of RE tax exemption for primary or main residence which would indicate which is the main home.

LOL! Would you have confidence in a restaurant that charges you extra to cover the cost of pumping your stomach in the case you get food poisoning?