We intend to list our house (which we have had built and lived in as our principal residence since 2001) in the spring of next year (2009) and move to a condo (pre-construction contract for which we signed about 2 years ago) after we sell our house. However, we expect to close the condo earlier at around August 2008 and are planning to do some millwork, change paint, furnish, etc. that will take a few months. So, between around late summer of 2008 and spring/summer of 2009, we will effectively have two "principal residences". What should (and shouldn't) we do to avoid being liable for capital gains taxes on either of the properties? Many thanks for your guidance.
