Boost Your 2010 Tax Deductions By Making Your January Mortgage Payment A Little Bit Early

By
Mortgage and Lending with Northeast Bank

Tax deductions Looking for an extra 2010 tax deduction? Consider making your January mortgage payment a few days early.

It’s a simple strategy that works because of how mortgage interest works.

Unlike rent which is paid in advance at the start of a month, mortgage interest is only paid after it’s been borrowed. Your January mortgage payment, therefore, accounts for the interest that accrued in December.

And for a lot of Bangor homeowners, that mortgage interest is tax-deductible.

By making January’s mortgage payment in December, eligible homeowners can apply the interest paid to 2010′s tax returns instead of waiting to claim the same deduction against 2011. Don’t cut it close, though. It’s best to remit payment prior to the last week of the month, leaving your servicer ample time to receive and process your paperwork.

Most importantly, though, before prepaying on your mortgage, talk to your tax professional.

Not every homeowner is eligible for mortgage interest tax deductions, nor should every homeowner itemize their respective tax deductions. The “pay early” plan could be a wasted effort for you, ultimately, depending on your taxpayer profile.

If you don’t have an accountant that you trust, call or email me anytime; I’m happy to make a recommendation to you.

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Shannon Odom
Mortgage Loan Officer
Northeast Bank
277 State Street Suite 3B
Bangor, ME 04401
P: 207-217-6750
C: 207-561-0944
F: 888-600-5335
smodom@northeastbank.com

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Dan Edward Phillips 12/13/2010 07:13 AM
Topic:
Lending / Financial
Location:
Maine
Tags:
tax deductions
mortgage interest
irs

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Rainmaker
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Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

Good Morning Shannon, good advice for home owners needing additional deductions.

December 08, 2010 09:02 AM #1
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Shannon Odom

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