Principal Residence--Mortgage debt relief act question--help!

[mrange25]

I have been scouring some websites about the forgiveness of debt, and some websites are claiming that it falls under the capital gains rules where it has to be your residence for two years.

I looked at the actual form 982 on the IRS website, and it says "Your principal residence is where you live most of the time. You can only have one principal residence at any given time."

So if you only have one house, it has to be your principal, right? Wouldn't that make sense?

Anyone know?

[yomann]

I believe for IRS and capital gains purposes, you have to live in a house for 2 of the past 5 years, in order for it to be treated as your principal residence.
If you only own one house, then obviously it is your principal residence.