I sold a primary residence in one state and moved to anther. Is the interest only deductible in the state where the house was located?

[ncekosh]

My family moved from Illinois to Wisconsin in September 2017.  We sold our primary residence in Illinois on October 13, 2017.  Is the interest expense on the residence deductible on Wisconsin taxes (I suspect not)?

[KittyM · Accepted solution]

You are correct, in this particular case, your Illinois interest is not deductible on your Wisconsin taxes.

You should be filing a Part-Year Illinois resident return, which will allow you to deduct the interest you paid on your Illinois return through September, and a Part-Year Wisconsin return for the period from your move in September through December 31, 2017, showing your income and deductions for Illinois.