Make Your January Mortgage Payment A Little Bit Early And Boost Your 2010 Tax Deductions

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.

Related posts:

  1. Get Extra Tax Deductions In 2008 — Pay Your Mortgage A Few Days Early

  2. How To Squeeze Extra Tax Deductions From Your Mortgage In 2007

  3. How To Increase Your 2009 Mortgage Interest Tax Deduction

  4. When Is A 5.000 Percent Mortgage Rate Really 3.600 Percent?

  5. What’s Your After-Tax Mortgage Rate?

If you have any questions, you can call me at 425.771.2095, email at chik@teamcq.com.

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 Professionals


mailto:chik@teamcq.com   Tel: 425.771.2095 | Toll Free: 866.428.1383 | Fax: 206.260.8000 | National Lic: MLO-86133

TeamCQ™ - Atlas Mortgage A Division of Pinnacle Capital Group Incorporated | 3503 188th Street SW | Lynnwood, WA 98037 | WA Lic CL-276506

  

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Lottie Kendall, Realtor®

Today | Sotheby's International Realty

San Carlos, California, 94070

CA BRE#01215160; 650-465-4547

Lottie@LottieKendall.com;

www.LottieKendall.com

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Comment balloon 8 commentsLottie Kendall • December 16 2010 01:56PM

Comments

Great Post! Have to save it where you can!!

Happy Holidays,

Christina Miller

Sarasota Florida Real Estate

Posted by Christina Miller (Sarasota Bay Real Estate) over 7 years ago

Hi Christina -- glad you liked the choice of re-blog. Happy holidays to you, too.

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Today | Sotheby's International Realty) over 7 years ago

Good reblog Lottie for a great idea!

Posted by Debbie Walsh, Hudson Valley NY Real Estate 845.283-3036 (Shahar Management) over 7 years ago

Hey, this is a great reblog, Lottie.  Thank you.  food for thought.

Posted by Jane Peters, Connecting you to the L.A. real estate market (Home Jane Realty) over 7 years ago

Lottie, This is a good post to reblog . Hope more people will read it.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) over 7 years ago

Hi Debra, Jane and Gita -- this post fits right in with our year-end and 2011 business planning, doesn't it?

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Today | Sotheby's International Realty) over 7 years ago

That's a great idea. Except for one small detail. My loan is with the BofA. Not my fault. But it is paid automatically on the first. If you think I would ever go near those idiots, messing with my payment(which they would lose, say I am in default, and then foreclose) think again. But it is a good idea, except for the BofA!

Posted by Jon Quist, Tucson's BUYERS ONLY Realtor since 1996 (REALTY EXECUTIVES TUCSON ELITE) over 7 years ago

It sounds like this idea isn't the one for you, Jon. If I had automatic payments, I wouldn't rock the boat either. You can look for other ways to maximize your 2010 tax deductions perhaps -- I'm paying my 2011 E&O insurance, Board dues, etc. before the end of December. Not only will I take the deduction this year, I get a discount for paying in full, in advance.

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Today | Sotheby's International Realty) over 7 years ago

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