Originally Posted by Vanka:
Hi. So we can deduct a percentage of our mortgage interest from our taxes.
But if we have paused the mortgage payments due to the pandemic (we got a mortgage forbearance for 6 months, from December 2020-June 2021), how would it work for tax purposes? Can i not claim anything? I know i haven't paid mortgage interest for Dec 2020, but i will pay it some other time, right? So, can i claim a tax deduction for estimated mortgage interest for Dec 2020 on my 2020 tax filings?
Also, how would it work for 2021? If i haven't paid mortgage for 5 months, can i not claim any housing expenses for those months?
My daycare is operating under extremely reduced capacity and i don't have much revenue, but still i would like to deduct the morgage interest percentage? Can i?
You can only deduct expenses you actually paid for the year. So, if you only paid for 7 months of mortgage interest, that's what you can deduct. When you pay the rest of the interest later, that's when you can deduct it. You can claim other housing expenses that you do pay: utilities, property tax, house insurance, etc.