How is primary residence determined?

[Bootsmiles]

What is the name of your state? California

Can someone please advise me on the following;
We own a rental house in a nearby city.
We plan to sell it in the future.
In order to avoid being taxed on the gains, I understand we need to live in it for two years.
We will keep the house we are currently living in as a "weekender" (I love the small town we are living in and don't really want to leave)
My question is; how is primary residence determined?
What does it take to satisfy the IRS?
Do I change addresses on; driverslicense, car-registration, creditcards? And what else?
Do I open a new bankaccount?
Any advice you can give me would be much appreciated.

[PghREA]

Read this: [url]http://www.irs.gov/pub/irs-pdf/p523.pdf[/url]


Especially the part about "your main home" and also the part about renting out your home.

[HomeGuru]

good info**************