@mxrider108 wrote:
Thanks for the reply. If I'm understanding correctly, however, it sounds like the interest would not be deductible based on your description?
Because I only started the mortgage for the new home after I moved out of California (no longer a resident). There was no overlap or time where I was paying for the home in NC while living in CA.
In that case I wouldn't deduct anything from the CA return, correct?
I don't know the exact dates here. I thought maybe you bought the house and started paying interest before you moved.
As an example, if you left California on June 30, 2023; purchased your house July 15, 2023, and your first mortgage payment with interest was September 1, 2023, then none of the interest is allocable to California. On the other hand, suppose you purchased your new house on June 15, and left California on June 30, and your first full mortgage payment was August 1. In that case, the daily interest that you were charged as closing (to cover June 15-June 30) is allocable to California, even if it is not included in your 1098 from the bank, but the subsequent interest is not allocable to California.
There should be a way in Turbotax to manually assign items of income and deductions to one state or the other. If you can't find it, you can call customer support to have them walk through the program with you.
