Primary Residence

A primary residence is the main home where an individual lives for the majority of the year.

For tax and financial purposes, a primary residence receives special treatment, including potential capital gains exclusions, homestead protections, and favorable loans.

In sports finance, primary residence classification matters because athletes frequently move, own multiple properties, or split time between states.

Making residency and tax treatment more complex for pro athletes compared to the average person.

Primary Residence Affects in Different Leagues

NCAA / NIL Athletes

For NCAA and NIL athletes, a primary residence often represents the first major financial decision tied to real assets.

As NIL income grows, housing choices can influence tax residency, future capital gains treatment, and eligibility-related considerations, making early planning important.

Use Cases

• First-time home purchases using NIL income
• Residency determination for state taxes
• Living off-campus while maintaining eligibility
• Parental co-ownership structures

Example

A NIL athlete purchases a home near campus using endorsement income and lives there full-time during the academic year.

That property qualifies as their primary residence, which can impact state tax obligations and future capital gains treatment if sold.

NFL

NFL players frequently own multiple homes across different states, making primary residence classification a critical tax and legal issue.

Determining which property qualifies impacts residency claims, capital gains exclusions, and long-term wealth planning beyond a player’s active career.

Use Cases

• Residency planning for tax-heavy states
• Differentiating between offseason homes and team-city homes
• Capital gains exclusions upon sale

Example

An NFL player lives in Florida during the offseason but owns a home near their team facility where they spend the majority of the season. The team-city home may still qualify as the primary residence for tax purposes, depending on time spent and intent.

NBA

In the NBA, frequent travel and high-value real estate ownership make primary residence determinations highly scrutinized.

Proper documentation and intent help protect players from residency disputes while preserving favorable tax treatment on high-priced homes.

Use Cases

• Multi-property ownership across states
• Residency disputes due to frequent travel
• High-value primary residences in major markets

Example

An NBA player owns homes in Los Angeles, Miami, and New York.

The property where they spend the most time and receive official correspondence is considered the primary residence, affecting tax filings and potential capital gains exclusions.

MLB

MLB players often face unique primary residence challenges due to long seasons and extended time in one location.

The distinction between seasonal housing and a true primary residence can significantly affect tax filings and asset planning over long careers.

Use Cases

• Long seasons impacting residency status
• Spring training vs regular-season housing
• Capital gains planning for long-held homes

Example

An MLB player resides near their team’s stadium for most of the year, even though their offseason home is elsewhere. The in-season home is treated as the primary residence for tax and legal purposes.

NHL

For NHL players, primary residence decisions often involve cross-border considerations.

Establishing and maintaining a clear primary residence is essential for avoiding double taxation and ensuring compliance with both U.S. and Canadian tax systems.

Use Cases

• Cross-border residency considerations
• Canadian vs U.S. primary residence rules
• Tax treaty implications

Example

An NHL player living in the U.S. during the season and Canada during the offseason must carefully establish which home qualifies as their primary residence to avoid double taxation issues.

MLS / International Soccer

Soccer players frequently relocate across states or countries, making primary residence classification central to tax compliance and long-term planning.

A clearly established primary residence provides stability amid frequent transfers and temporary housing arrangements.

Use Cases

• International relocation
• Temporary housing during transfers
• Residency planning for tax compliance

Example

An international player moves to the U.S. for MLS play and establishes a primary residence near their club, impacting state tax filings and future asset planning.

Combat Sports

Combat sports athletes typically operate as independent contractors, making primary residence a key anchor for tax filings, deductions, and legal protections.

Global competition schedules raises the importance of a primary residence and defines the athlete’s financial home base.

Use Cases

• Independent contractor status
• Home office deductions
• Training-based residency claims

Example

A fighter trains and lives primarily in one state despite fighting internationally.

That home is treated as the primary residence for tax and legal purposes.

Golf / Individual Sports

For individual athletes with travel-heavy schedules, a primary residence serves as the foundation for tax residency and financial organization.

Choosing and documenting a primary residence helps manage state tax exposure and long-term real estate planning.

Use Cases

• Seasonal residency planning
• Multi-state property ownership
• Long-term tax optimization

Example

A golfer establishes a primary residence in a low-tax state while maintaining tournament housing elsewhere throughout the season.

Racing / NASCAR / F1

In racing, a primary residence often aligns with team headquarters or training hubs.

Establishing a consistent home base simplifies tax compliance and supports long-term planning despite constant travel and international competition.

Use Cases

• Travel-heavy schedules
• Charter and team-related residency
• Home base determination

Example

A driver lives near their team’s headquarters year-round, making that property their primary residence despite frequent travel for races.

Why Primary Residence Matters

Primary residence status affects capital gains taxes, state tax residency, loan eligibility, legal protections, and estate planning.

For athletes, misclassifying a primary residence can result in unexpected tax bills, audits, or lost exclusions.

Understanding and documenting primary residence is foundational to long-term financial stability.

Related Terms

• Secondary Residence
• Capital Gains Exclusion
• Domicile
• Residency
• Real Estate

Next Reads

• Inside Juan Soto’s $25 Million Beverly Hills Mansion
• Inside Jayson Tatum’s $17 Million Mansion Purchase
• Travis Hunter’s $3.275 Million Jacksonville Mansion
• Inside Tyrese Haliburton’s $3.2 Million Indianapolis Mansion
• Why NHL Players Flock to Florida Teams: Taxes & Take-Home Pay

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