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ElenaPar
Returning Member

Buying a home

I bought a home September 2019. Under my primary residence do I list my old home that I lived in 9 months out of the year or the new home that I lived 3 months out of the year and currently  living in now? My old house was turned into a rental - so it is listed in that section for the left over 3 months. 

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3 Replies
BillM223
Expert Alumni

Buying a home

"Under my primary residence "

 

If this refers to your address in the Personal Info/My Info section, enter the address where you want the IRS to send you mail. Presumably this is the new home where you are living now.

 

This should appear at the top of the 1040.

 

If you see "primary residence" in another part of TurboTax, come back and let us know where you see this.

 

 

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ElenaPar
Returning Member

Buying a home

You are correct, it does not use words “primary home”.  The section I am reffering to is under PERSONAL-DEDUCTIONS & CREDITS. The first question is: Did you own a home in 2019? The second question is: Home loan deduction summary. Followed by: Enter any additional property tax you paid in 2019 - Property tax on your main home_____

 

So my question is when responding to the above, which home do I include?  

BillM223
Expert Alumni

Buying a home

"Property tax on your main home_____" - this refers to your main residence from Jan to Sept in 2019 AND to your new home from Sept 2019 to Dec 2019.

 

You possibly had two different tax bills for 2019 for your "main home"; if so, add them together. Note that you will have to examine the closing papers (or call the title company) to see if at closing, you ended up paying for those months (and not that the buyer paid for some of it on the new house).

 

Any property tax that was assessed on your old home while it was a rental property should be reported on Schedule E as a business expense (and NOT Schedule A).

 

Because of this split year situation, it becomes a bit convoluted, because property taxes are generally paid annually. On your old house (the one that become a rental property) you may have to manually prorate the amount of the property tax paid on your old house so that 9 months goes to Schedule A and 3 months goes to Schedule E (or however you allocate it).

 

Whatever you figure there for Schedule A, then you add any property tax paid on your new house for 2019 (if any).

 

And Schedule E should have the property tax allocated to the time (3 months?) that the old house (now rental) was "placed in service" (i.e., available for rent, whether or not it actually was).

 

There may not be a way to automagically enter this unusual situation in TurboTax, but if you will figure out the amounts by hand, you should be able to manually enter the amounts so that the numbers on Schedules A and E turn out correctly.

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