View Full Version : Mortgage Interest
02-03-2011, 03:56 AM
I'm confused about mortgage interest, and deducting it for buisness, we've deducted our mortgage interest every year even when I worked outside the home, so whats the difference?
02-08-2011, 05:56 AM
02-08-2011, 10:11 AM
I know when I put it into Turbo Tax, I had to specify the part of the year where I paid mortgage interest w/o the daycare open, and then the interest I paid WHILE the daycare was open. I guess maybe it's just more of a benefit when it's your business? Not sure...
02-08-2011, 03:58 PM
Before doing child care you were entitled to claim 100% of your mortgage interest and property tax on Schedule A if you itemize your taxes. Once your business begins you must allocate these expenses between Schedule A and Form 8829. You will claim the time-space % of these expenses on Form 8829 and the remaining amount on Schedule A. This is a benefit to you because expenses showing on Form 8829 are worth more to you than expenses on Schedule A. This is because you are paying higher taxes on your business income than personal income.
Join me on February 28th for my webinar "How to Reduce Your Taxes for 2010 and 2011. For more info:http://www.daycare.com/news/taxes/tom-copeland-webinar.html
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