Common use of Use of Residence Clause in Contracts

Use of Residence. A residence is a personal residence only if its primary use is as a residence of the term holder when occupied by the term holder. The principal residence of the term holder will not fail to meet the requirements of the preceding sentence merely be- cause a portion of the residence is used in an activity meeting the require- ments of section 280A(c) (1) or (4) (re- lating to deductibility of expenses re- lated to certain uses), provided that such use is secondary to use of the resi- dence as a residence. A residence is not used primarily as a residence if it is used to provide transient lodging and substantial services are provided in connection with the provision of lodg- ing (e.g., a hotel or a bed and break- fast). A residence is not a personal resi- dence if, during any period not occu- pied by the term holder, its primary use is other than as a residence. A resi- dence is not a personal residence if, during any period not occupied by the term holder, its primary use is other than as a residence.