As you know the interest you pay on your mortgage is tax-deductable.
Which means that if you’re able to pay your January 2010 mortgage payment before the end of December you’ll be able to increase your 2009 tax deductions. And that’s always a good thing.
Paula Henry who sells Indianapolis real estate wrote a timely post reminding everyone of this.
She also states that:
This time of year, it’s easier for some to postpone their mortgage payment until after the holidays. 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.
In the end you’re paying it anyway… I know the holidays make it difficult. Plus, property taxes are due. In my case, I’m not escrowing enough per month; so I have an extra $400 I need to come up with in the next couple of weeks…
But, if you’re able, by pre-paying you’re guaranteeing that the tax-man will leave a little more in your stocking come April 15, 2010.
PHONE: (608) 542-0178
My name is Adam Holberg and I’m a Realtor with First Weber of Wisconsin Rapids. This website is designed to inform and help bring conversation to a topic I love, real estate.