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yang-warren
New Member

If i move mid year to another house, do i get the mortgage interest deduction & Property tax deduc for all mortgage interest paid to both properties for the entire year?

I moved to a new property mid 2015. I kept the incumbent property and later used it as a rental.  I paid mortgage interest for the entire year on the incumbent property. I paid mortgage interest for part of the year on the new property i moved into.  I paid property taxes for both properties for the entire year.  

For the mortgage insurance deduction:  do i have to prorate what i deduct from both properties based on many days i lived in each property? Or, do i get to take all interest paid from both properties?

Same question for the property taxes.
1 Reply
DDollar
New Member

If i move mid year to another house, do i get the mortgage interest deduction & Property tax deduc for all mortgage interest paid to both properties for the entire year?

You get to take a deduction for all of the Mortgage Interest you paid on each property.  You should receive (if you haven't already) a 1098 from each mortgage company that shows the exact amount of interest you paid on each loan.  You will enter the interest reported on both 1098s in TurboTax.

As for the property tax, you can deduct the prorated amount of property tax based upon the number of days you owned the property.  Your HUD-1 Closing Statements will both show adjustments.  The adjustments will depend upon when the closing occurred in relation to when the property taxes are/were paid.  For example, if you sold your house after you had paid the 2015 property taxes for the entire year, then there would be an adjustment where the buyer paid you for the taxes related to the part of 2015 they owned the house. You would subtract this from the amount you paid to calculate your deduction.  Similarly, if you purchased your house after the seller paid the 2015 property tax, there would be an adjustment on the closing statement showing your share of those property taxes, which you can deduct.

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