Hi,
I bought a new house (AKA house A) in June, 2021. After I bought house A, I have home improvement done and moved to house A in August 2021.
I lived house B for more than 20 years. I put house B on market on September, 2021 and was sold in November 2021.
Here are my questions:
- House B is my primary residence in last 20+ years.
For 2021 tax return, which is my primary residence?
Should we treat house B as primary residence for January through July 2021 since I moved to house A in Aug?
This mean we treat house A as primary residence starting from August 2021.
2. Property tax and mortgage interests.
I paid property tax and mortgage interest for house B to cover all way to October (house B was sold in November). I also paid two installments for house A.
I paid mortgage interest for house A staring from June 2021.
For 2021 tax return, how do I calculate mortgage interest and property tax for my primary residence?
Assume the following:
House B as primary residence for January through July 2021.
House A as primary residence starting from August 2021.
Here is my formula:
For mortgage interest, first 7 months from house B + remaining 5 months from house A.
For property tax, paid on house B + 2 installments for house A.
Is that right?
Thanks,
Bob
