Welcome Guest. Register Now!  


For 2012 Tax Tips For Year 2012.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 12-14-2012, 06:18 PM
Junior Member
 
Join Date: Dec 2012
Posts: 1
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.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 12-20-2012, 09:08 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
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.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
home mortgage interest tax gdproj Itemized Deductions 2 07-23-2012 10:00 PM
MFS: mortgage in spouse's name; payments via joint account; mortgage interest / real estate deduction options ohjustbob Itemized Deductions 1 03-08-2011 01:08 AM
mortgage interest after divorce jkb67 Divorce Tax Issues 1 02-24-2011 08:46 PM
Investment mortgage interest Jaxtivers Miscellaneous 0 04-14-2010 07:06 PM
reporting mortgage interest saugeye Rental Real-Estate 1 03-11-2009 04:19 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.