For many American homeowners, interest paid on a mortgage is tax deductable in the year in which it was paid.
Knowing that, eligible homeowners can increase their 2009 tax deductions just by making their January 2010 mortgage payment before the end of the year.
By paying in 2009, the mortgage interest paid can be applied against 2009’s itemized tax deductions even though the payment isn’t technically due until 2010.
It can reduce your tax burden.
And, if you think you’re paying the mortgage “in advance”, remember mortgage interest is paid in arrears; payment due January 1 accounts for interest accumulated in December 2009, anyway.
Tax planning is a complicated issue and not all homeowners qualify for mortgage interest tax deductions. Check with your tax professional before making tax planning decisions.
If you don’t have an accountant you trust, call or email me anytime; I’m happy to make a recommendation to you.
Posted by Scott Fowler. Scott can be reached @ 864-527-8900 x104 or SFowler@HorizonFinancial.org. Visit Scott’s website @ www.ScottFowlerTeam.com .
