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Old 12-14-2012, 06:18 PM
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Mortgage Interest - 2012

I purchased my home in November 15th 2011. My first payment was then due on Jan 1, 2012. I made the payment on December 28th, 2011 and received a 1098 that included the interest I paid on the house in 2011. Since this was the only interest I paid on the house in 2011, I wasn't able to itemize my deductions for 2011 (thus not using the amounts on this 1098 for 2011) and am wondering if I can include the interest paid on December 28th for my first payment since it wasn't technically due till the 1st of January. I can understand if it's not, considering the interest was hypothetically accrued during the November and December days leading up to the payment, but I'm still holding out hope . Let me know your thoughts.



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Old 12-20-2012, 09:08 PM
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I purchased my home in November 15th 2011. My first payment was then due on Jan 1, 2012. I made the payment on December 28th, 2011 and received a 1098 that included the interest I paid on the house in 2011. Since this was the only interest I paid on the house in 2011, I wasn't able to itemize my deductions for 2011 (thus not using the amounts on this 1098 for 2011) and am wondering if I can include the interest paid on December 28th for my first payment since it wasn't technically due till the 1st of January.”---->Yes you can.First of all, as yo can see, you must itemize your deductions on Sch A of 1040 to deduct expenses reported on Sch A on your return. Mortgage interest is a tax-deductible expense. It is reported on Form 1040, Sch A along with other itemized deductions such as real estate property taxes, medical expenses, and charitable contributions or etc. You paying mortgage interest should fill out Sch A to see if your itemized deductions exceed your standard deduction. If so, you will save more money on your taxes by itemizing. You who itemize your deductions will need to file the Form 1040 long form; And interest can only be deducted if you actually pay it during the year. So you can deduct any portion of the interest you actually paid through the year.In each year, you can only deduct the interest that qualifies as home mortgage interest for that year. Each year the lender will release a 1098 form that shows the amount of the mortgage paid during that year and the total interest paid. If you paid more interest than your Form 1098 shows, you must attach a statement to your tax return that explains why you can deduct more than your lender reported on your Form 1098.


“ I can understand if it's not, considering the interest was hypothetically accrued during the November and December days leading up to the payment, but I'm still holding out hope . Let me know your thoughts.”----->As described previously. Form 1098 is the statement your lender sends you to let you know how much mortgage interest, points, or private mortgage insurance you paid during the year.



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