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My family purchased our home in Illinois in 2019, moving from our rental midyear. Turbo Tax asks if we owned our primary residence in 2019, which we only did for half the year, paying half the property taxes due that year. When clicking the radio button, do I choose yes for owning our primary residence (for only half the year?) And will only owning for half the year affect what I am allowed to claim?
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yes to did you own your primary residence. your real estate tax deduction for 2020 (2019 taxes in Illinois are billed in 2020) is what you paid directly or was taken out of your escrow account less any credit on the closing statement for those taxes the Illinois credit is based on that deduction
It's probably me overthinking, but just wanting to be clear. I still use the property tax amount listed on my 1098 under "disbursement activity 2020" (less any credits) for this calculation? And it isn't changed by only owning for half the calendar year 2019 (and only making one of the two payments that year)?
So with dummy numbers, calendar year 2019 we paid 2500. Calendar year 2020 we paid 5000. I click my yeses about 2019 primary and that 5000 number (from the 1098) is correct for this portion of the form?
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