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From: bobn@bmcg.UUCP (Bob Nebert)
Newsgroups: net.taxes
Subject: Re: taxes & home purchase
Message-ID: <1811@bmcg.UUCP>
Date: Tue, 20-Aug-85 19:48:48 EDT
Article-I.D.: bmcg.1811
Posted: Tue Aug 20 19:48:48 1985
Date-Received: Sun, 25-Aug-85 05:00:13 EDT
References: <1793@bmcg.UUCP> <4154@alice.UUCP> <531@bonnie.UUCP>
Organization: Burroughs Corp. ASG, San Diego, CA.
Lines: 17

> > 
> > 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.
> > 
> If you want to deduct the Jan 1 payment this year, pay it on Dec. 30.
> Make sure you get a separate rct. from the bank dated Dec. 30, since they
> will probably credit your account on the next business day (which is next
> year).  As far as IRS is concerned, it's the date you actually PAID the
> interest that counts.

If you prepay on December 30 and deduct it for that year, you will only
have 11 months for the next year. If you do the same that year, the 
cycle repeats. I don't see the advantage.