Confused about move date and implications. In 2022, (1) sold long time permanent residence home in MO in July but rented for a few months in MO and (2) took vacation rental property in AL off the rental program in December -- as we planned on remodeling AL property for 2 months (December and January) before physically moving to AL as our primary residence in 2023.
In Feb 2023 we did move to AL as primary residence. In spring 2023 when preparing 2022 taxes, asked TurboTax Community if we should go ahead and convert AL rental to primary in December 2022, or wait until we moved in February 2023. Community said go ahead and convert it, then actually document move in February 2023. That's exactly what I did and how it happened but concerned dates look wonky to IRS. Is this a problem? What does move date trigger, something for AL or MO filing? THX
No, the IRS doesn't care when you moved from one state to the other, both locations and are in the US, so it makes no difference for federal tax purposes.
One thing the IRS is concerned about is when the rental activity ended. Sounds like you reported that it ended when it you stopped renting it out, which is correct.
The move date is for state taxes affects both states. If you were physically present in MO until February, you will need to file a part-year return in both MO and AL.
The move date you use for state taxes should be the date on which you actually started living and sleeping in AL.