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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121316  
Subject: Re: Mortgage Payment on 12/29/98 Date: 1/27/1999 7:49 PM
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[[I made my mortgage payment, that was due on 1/15/99 on 12/29/98, assuming
that I will be able to take the interest deduction for that payment on my 98
Taxes.]]

Maybe...in theory...

[[ But when I received my statment from the bank, they had subtracted that
interest amount from my 1998 total interest. I thought since I paid in 1998 I
would be able to take the deduction in 1998? Am I wrong?]]

I don't know what your loan documents actually say. They may have treated your "extra" payment as a principal reduction rather than your January payment. If this wasn't explained when you made the payment, it is VERY possible that the mortgage company screwed it up.

There is no question that you can make your January payment early, and deduct the interest. The problem is that the mortgage company really has the control in this issue. So you'll really have to call them and deal with them on this issue. You may be able to convince them that they applies the payment incorrectly, and get done what you would like to get done.

TMF Taxes
Roy

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