Tax Advantages of Your Mortgage
Save Money with Your Home Mortgage For most people, deducting your home mortgage interest payments from your taxable income is your first reward of home ownership! Of course this depends entirely on your income and other financial issues, so before you leap into any financial program, speak to your personal accountant. There are several ways to save money with your mortgage: EASY Tax Savings: Pay AHEAD on your mortgage at year’s end by one payment (or more). Most mortgages allow you to pay an additional 20% each year without penalty. By making an extra payment this year, you may be able to deduct the interest from your tax bill. Your accountant can advise if you will qualify for this additional deduction. Your bank must receive your payment by December 31 of the year you are making the extra payment. Your bank will provide your Federal Form 1098 before January 31 of the year you are filing your taxes (for the previous year). And all of the interest you paid in the previous year will be...