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It depends. In your case, it seems you can only use the property you sold in 2024, and not the one you purchased.
The rules for the property tax credit when a home is sold and another purchased are as follows:
- Illinois property you purchased: You may figure a credit for Illinois property you purchased during 2023 providing you figure only that portion of your taxes that pertains to the time you owned and lived at the property during 2023. You may not take a credit for taxes you paid if the seller reimbursed you at the time of closing. You also may not take a credit on your 2024 return for property you purchased in 2024.
- Illinois property you sold: You may figure a credit for Illinois property you sold in 2024 by combining the 2023 property tax paid in 2024, as well as a portion of the 2024 tax paid based on the time you owned and lived at the property during 2024. You may not take a credit on your 2024 return for property sold during 2023.
- For more information, see Publication 108, Illinois Property Tax Credit
Be sure you are using only the property taxes you are allowed when making the entries for the credit on your Illinois return.
The key is that the information is correct by the numbers and will provide the appropriate credit. Please update if you have more questions and we will help.
