A couple of great tips for saving on your 2006 income taxes, by buying or selling real estate before the end of the year.
The best tip: make your January 1, 2007 mortgage loan payment in 2006.
An easy big tax-saver for homeowners is to prepay your January 2007 mortgage payment well before Dec. 29, 2006. If your mortgage lender receives the payment in time to include it on your IRS 1098 interest deduction statement, the result will be an increased itemized interest deduction for 2006.
Of course, if you make the payment this year, you’ll lose out on the deduction, next year.
But, worry about that, then.
More: Homeowners: Year-end tax savings await you! – There’s still time to sell, refinance, or prepay mortgage – By Robert J. Bruss, Inman News, by way of The Boston Globe