Mortgage professional Chik Quintans, from Washington State, wrote this post, full of ideas we can all contemplate and perhaps use. There are different strategies one can utilitize to increase 2010 income tax deductions, but remember to consult your financial advisor or tax professional to see what's best for you--everyone's situation is different.
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 Washington State 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.
If you have any questions, you can call me at 425.771.2095, email at firstname.lastname@example.org.
You are also welcome to follow me on at http://twitter.com/chikquintans and join the conversation anytime.
Certified Mortgage Planner | Asst. Sales Manager | Board Director WA Association of Mortgage Professionalsmailto:email@example.com Tel: 425.771.2095 | Toll Free: 866.428.1383 | Fax: 206.260.8000 | National Lic: MLO-86133TeamCQ™ - Atlas Mortgage A Division of Pinnacle Capital Group Incorporated | 3503 188th Street SW | Lynnwood, WA 98037 | WA Lic CL-276506