1. You will file 2 part year returns and allocate income to each state. Your income received in Oregon, like Social Security can be determined by looking at your records. Alternatively, 2/12 would be close enough. Just divide the total by 6 to get the OR amount.
2.Federal tax is allowed on the OR return and you can prorate it. You will have to go through all the categories for each return and allocate as needed.
3. The property tax paid at closing is still property tax and entered on Sch A or Sch E if rental. You won't deduct anything besides property tax and mortgage interest. However, costs that you can add to your basis are:
- Escrow fees
- Legal fees
- Real estate agent commissions
- Advertising costs
- Owner’s title insurance
- Abstract and title search fees
- Recording fees
- Survey fees
- Transfer or stamp taxes
Since it was your main home and you are married, the first $500,000 of gain is excluded less any prior depreciation taken. If it was your main home that you lived in 2 out of 5 years, you may not need to report the house sale at all. See Topic No. 701 Sale of Your Home.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
