If your cashflow will support it, make January's mortgage payment in December of 2006. This will allow you to claim the extra interest payment as a deductible in this year's taxes.
Depending upon where you live, this can be substantial.
In our circumstance, it will save about $1500 in taxes.
Good luck,
makingourway
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4 comments:
This may be a dumb question, but doesn't that make you off for next year? Twelve months, twelve payments.
It certainly does, but saving the money today to invest for tomorrow is better than delaying the investment. In fact, it becomes a habit.
Regards,
makingourway
I tned to look at taxes differently.... Sure, I like to save money but I'm all about CREATING money. I love a nice fat AGI on my tax return, it increases my borrowing power.
Leverage Baby
Leverage,
You've got a great point! Increasing your assets is always better than tax savings, but when you can do both - why not?
Keep in mind assets are meaningless without prudent stewardship - think of all the people paying 2%+ expense fees in overpriced mutual funds - over 20 years the majority of those assets transfer to the brokerage - not the investor.
Regards,
makingourway
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