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Path: utzoo!watmath!clyde!burl!ulysses!mhuxr!mhuxt!houxm!vax135!petsd!pesnta!hplabs!hp-pcd!john
From: john@hp-pcd.UUCP (john)
Newsgroups: net.taxes
Subject: Re: taxes & home purchase
Message-ID: <53400016@hp-pcd.UUCP>
Date: Mon, 19-Aug-85 12:44:00 EDT
Article-I.D.: hp-pcd.53400016
Posted: Mon Aug 19 12:44:00 1985
Date-Received: Sat, 24-Aug-85 13:51:58 EDT
References: <10951@rocheste.UUCP>
Organization: Hewlett-Packard - Corvallis, OR
Lines: 20
Nf-ID: #R:rocheste:-1095100:hp-pcd:53400016:000:802
Nf-From: hp-pcd!john    Aug 19 08:44:00 1985

<<<
<
< Your first mortgage payment isn't due unti May 1.  Payments will be
< due the first of each month thereafter.  Thus, this year you can deduct
< payments you made on the first of May, June, July, August, September,
< October, November and December.  You have to wait until next year
< to deduct the payment you made on January 1.
<
Actually you can only deduct the "Interest" portion of your payment, the
$20 or $30 that goes towards the principle is not deductable. 
Most banks will also maintain a reserve account for your fire/disaster 
insurance to protect themselves from your forgetting to mail in the
payments.


Question: If you mail the 1 Jan payment in a week early and it clears the
          bank by 31 Dec then what year do you deduct the interest?

John Eaton
!hplabs!hp-pcd!john