Abby Normal Posted December 22, 2015 Report Share Posted December 22, 2015 Client wants to prepay next year's mortgage interest because of income spike this year. I told them it would all go to principal but they called the bank and were told they could designate it as not for principal. I still don't think the bank will allocate it to interest on the 2015 1098 because it hasn't been earned yet by the bank. All thoughts appreciated! Quote Link to comment Share on other sites More sharing options...
Lee B Posted December 22, 2015 Report Share Posted December 22, 2015 According to The Tax Book: 1. If the taxpayer prepaid interest in 2014 that accrues in full by Jan 15th, 2015, this prepaid interest may be included in box 1 Form 1098. 2. The prepaid amount for January 2015 is not deductible in 2014. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted December 23, 2015 Report Share Posted December 23, 2015 mortgages are in arrears so the normal January payment is December interest and is deductible. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted December 23, 2015 Author Report Share Posted December 23, 2015 2 hours ago, michaelmars said: mortgages are in arrears so the normal January payment is December interest and is deductible. Only if paid in December. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted December 24, 2015 Report Share Posted December 24, 2015 18 hours ago, Abby Normal said: Only if paid in December. that's what I meant <S> Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.