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Subject Author Date
Can I deduct deferred mortgage interest? albion01 01-24-2007
Posted by albion01 on January 24, 2007, 1:56 am
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 Since may of 2005 I have had a minimum payment mortgage on
my house. I have incurred, this year alone, $3700 in
deferred interest which was added to the principal of my
loan each month. I was wondering if I can declare that
deferred interest as a deduction on my 2006 US income taxes.
I was also wondering if I could also deduct the deferred
interest from the previous year since I didn't use on my
previous years tax form.

Thanks in advance.

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Posted by A.G. Kalman on January 25, 2007, 2:05 am
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 albion01@gmail.com wrote:

> Since may of 2005 I have had a minimum payment mortgage on
> my house. I have incurred, this year alone, $3700 in
> deferred interest which was added to the principal of my
> loan each month. I was wondering if I can declare that
> deferred interest as a deduction on my 2006 US income taxes.
> I was also wondering if I could also deduct the deferred
> interest from the previous year since I didn't use on my
> previous years tax form.

Deferred interest is not interest you paid. You can only
deduct the interest you paid.

--
Alan
http://taxtopics.net

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Stuart A. Bronstein on January 26, 2007, 4:42 am
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> albion01@gmail.com wrote:

>> Since may of 2005 I have had a minimum payment mortgage on
>> my house. I have incurred, this year alone, $3700 in
>> deferred interest which was added to the principal of my
>> loan each month. I was wondering if I can declare that
>> deferred interest as a deduction on my 2006 US income taxes.
>> I was also wondering if I could also deduct the deferred
>> interest from the previous year since I didn't use on my
>> previous years tax form.

> Deferred interest is not interest you paid. You can only
> deduct the interest you paid.

If he borrowed money on his credit card and paid with that,
he'd get the deduction. How is this different?

Stu

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by L K Williams on January 26, 2007, 11:52 pm
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Stuart A. Bronstein"

>> albion01@gmail.com wrote:

>>> Since may of 2005 I have had a minimum payment mortgage on
>>> my house. I have incurred, this year alone, $3700 in
>>> deferred interest which was added to the principal of my
>>> loan each month. I was wondering if I can declare that
>>> deferred interest as a deduction on my 2006 US income taxes.
>>> I was also wondering if I could also deduct the deferred
>>> interest from the previous year since I didn't use on my
>>> previous years tax form.

>> Deferred interest is not interest you paid. You can only
>> deduct the interest you paid.

> If he borrowed money on his credit card and paid with that,
> he'd get the deduction. How is this different?

How would he claim the deduction? The credit card company
does not have the necessary perfected lien against the
property. Or has the law been changed so that we can claim
such things as credit card and auto loan interest again?

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Stuart A. Bronstein on January 28, 2007, 4:26 am
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>>> Deferred interest is not interest you paid. You can only
>>> deduct the interest you paid.

>> If he borrowed money on his credit card and paid with that,
>> he'd get the deduction. How is this different?

> How would he claim the deduction? The credit card company
> does not have the necessary perfected lien against the
> property. Or has the law been changed so that we can claim
> such things as credit card and auto loan interest again?

You're right, I was thinking about the old days. Or the
credit card is really a separate line of credit secured by a
mortgage in the house.

In the normal case spending borrowed money is deductible if
the payment would otherwise be deductible with unborrowed
money. So why is this situation any different?

Stu

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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