Let’s start right off the bat. I am not a CPA. I am not an accountant. However, I will provide you with a little food for thought related to your tax deductions as we get close to the New Year. If you are looking to increase your tax deductions for 2010 (maybe you had a great year), you should consider two things.
First, make your January mortgage payment early. Make sure it gets paid before the 1st. 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.
Second, make sure to get your property tax payment in before the 1st of the year. Those bills are not due until the end of January, but you can take that deduction this year, if you get it in before Dec. 31st. All of you Houston Harris County folk can make your payment on HCAD.org.
Again, don’t take my word for it, talk to your tax professional. That’s what you pay them for. Not every homeowner is eligible for mortgage interest tax deductions, nor should every homeowner itemize their respective tax deductions. These early payments could be a wasted effort, depending on your personal tax situation.