Tax Deduction For Prepaid Interest

Tax Day is only a couple of weeks away. Don’t forget to claim the deduction for the mortgage interest you paid at closing when you bought your home.

All mortgage interest is tax deductible. You should have received a year-end statement from your lender showing how much interest you paid for 2006. However, this statement does not include the interest paid at closing. You will need to pull out your settlement statement or HUD-1 to determine how much interest was paid at closing. This amount can then be added to the number on your lender’s statement. If in doubt, provide your HUD-1 to your accountant or tax preparer.

For information about buying a home in the Ludlow, VT area, visit my website or give me a call at 800-659-1819 #103.

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