Increase Your Tax Deductions — Pay Your Mortgage A Few Days Early
Do you own a home with a mortgage, who doesn’t? Well them like everyone the mortgage interest paid on your mortgage is tax-deductible in the year in which it was paid…
With advance planning you can increase your tax deductions this year and reduce your tax liability. Will your income put you just over a tax bracket? Do you just want to lower your tax bill so that you don’t “owe” on April 15th? Well pay your January mortgage payment before January 1st.
In making the payment in this year, the payment’s mortgage interest is included in the interest you paid this year not next year. A larger deduction than if you had waited. Tax planning is a complicated issue and not all homeowners will qualify for mortgage interest tax deductions like those who must pay the AMT. Check with your tax professional before making tax planning decisions. Looking for an account? I always recommend Don Brooks here in Connecticut.
