Originally Posted by Kaylala:
I have 2 questions.
1. When I claim my mortgage can I only claim how much I a supposed to pay or can I claim how much I actually pay. By this I mean we owe 700 a month but actually pay 1100. Which number do I use the t/s on.
2. We recently updated the windows in our home. We have a loan for the windows that we will repay monthly. Do I just use t/s on the monthly payment of the windows? And again do I claim what I owe or what I actually pay since we will pay extra on the loan.
Thank you so much!
1) You can deduct the time-space % of your mortgage interest, not your mortgage payment. Your mortgage payment also includes principal on your home. You deduct the principal by depreciating your home.
2) You can deduct the time-space % of the loan interest on your window loan. If you replaced less than half of the windows in your home, you can treat the cost as a repair and deduct the cost in one year, using your time-space? If you replaced more than half your windows you must depreciate the cost over 39 years as a home improvement. But, then you can use the 50% bonus depreciation rule and deduct half the depreciation in the first year.