My4SunshineGirlsNY 09:02 AM 02-19-2012
My business closed in Aug. of last year, I have a statement for my mortgage interest paid for the year, do I need to prorate this amount since I was only in business 8 months last year? What about my real estate taxes, would that have to be prorated as well??
Michael 03:12 PM 02-19-2012
TomCopeland 05:28 PM 02-20-2012
Originally Posted by My4SunshineGirlsNY:
My business closed in Aug. of last year, I have a statement for my mortgage interest paid for the year, do I need to prorate this amount since I was only in business 8 months last year? What about my real estate taxes, would that have to be prorated as well??
You enter 8 months of mortgage interest on Form 8829. The same for real estate taxes and utilities and house insurance and house depreciation.
HelenS1985 06:00 AM 03-26-2012
No - you can only claim the deduction the year you pay it. She is lucky she did not get audited if her mortgage interest was close to her AGI. She is only allowed a deduction for mortgage interest she actually paid herself.