Claiming Mortgage Interest & Taxes Help

[legomom922]

My taxes got paid Oct 2010 for the "year" of June 30 2010-July 1, 2011. The amount that was paid Oct 2010 & Oct 2009 are different. So in order for me to claim the correct amount of taxes, do I just take the total for each yr and divide by 12 months and take that figure and multiply it by the number of months I was in business? So I would claim June 2010 by one figure and July 2010-Dec 2010 by another?

Now with the Mortgage Interest...how do I detrimin that figure because the interest is going to be different every month because every month we make a payment, it changes the principal, so I assume it changes the interest? I have a mortgage interest statment but it only gives the total fo rthe yr, which was 5539, and I know I probably just cant divide that by 12 months too right? How do I find the right figure for every month? Even on my mortgage state its listed together as principal & interest.. sigh...

[dEHmom]

for mortgage interest, does it show on your online banking? Mine does, so it was easier.

You can plug the info into a spreadsheet, starting balance, interest % , then you plug the formulas into the spreadsheet for interest, principal, new balance, etc.

I can get the formulas if you want to do the spreadsheet. Then you just do the sum of all interests paid to get your answer.

[TomCopeland]

Deduct property taxes in the year they were paid. So, deduct all of the property taxes paid in October 2010 on your 2010 tax return (after multiplying by your t/s%).

Mortgage interest - Use the figure for the entire year, don't try to figure out your monthly mortgage interest.

[legomom922]

Originally Posted by TomCopeland

Deduct property taxes in the year they were paid. So, deduct all of the property taxes paid in October 2010 on your 2010 tax return (after multiplying by your t/s%).

Mortgage interest - Use the figure for the entire year, don't try to figure out your monthly mortgage interest.

Forgive me it's my insomnia problem again...I guess it would have helped to tell you I was only in business from 6/2010 on...So thats why I am assuming I can only claim part yr taxes, & interest??

[TomCopeland]

Now you tell me! Take your October payment and divide by 12 then multiply by 6 to determine how much to deduct for 2010.

[legomom922]

Originally Posted by TomCopeland

Now you tell me! Take your October payment and divide by 12 then multiply by 6 to determine how much to deduct for 2010.

I really do suffer form Insomnia, so I am not always with the program, LOL I am brain dead most of the time!

Am I correct I should also take 2009's info for because June 2010 was paid in Oct 2009?

[TomCopeland]

You can claim mortgage interest for 2010 that was prepaid in 2009.