Any CPA's here? I have a tax question.
gmcman
Posts: 1,822
Not sure why our home mortgage interest is not making any dents this year, feel free to PM me.
Thanks
Thanks
Comments
-
Not sure what you're asking*, and heaven knows I am the diametrical opposite of a CPA, but I am always interested in tax questions! Ergo, I asked my local (ahem: live-in) tax expert**, and she just looked at the rules: interest is deductible for up to $750,000 of a mortgage. In other words, if you have, say, a $1.5 million mortgage, some of the interest will be deductible, but not all of it.
_______________
* I'm guessing you're asking about how much interest you can deduct?
** she used to do 'em, for fun and profit, for years when the kids were young, and she did ours even longer -- 'til I retired and started a consultancy, when we decided to bite the bullet & use a CPA to do ours. THAT is a decision we've never regretted!
-
Our mortgage interest isn't too much, <10K.
Just odd each year it takes a little bit from what we owe, and this year the needle didn't move. -
As you go further into paying your loan the more you're paying to the principle and less to the interest.
So that would make sense.
Post edited by skipshot12 on -
^^^ could be that. It's straightforward to calculate P and I per payment for the life of a loan with a spreadsheet. I am sure there are myriad apps that'll do it as well.
Not to drift too far off topic, but putting even a little bit extra per month towards principle can save scads of $$$ over the life of a mortgage.
-
From what little I know of tax, if you take the standarized deductions I don't believe it even matters- Not Tom ::::::: Any system can play Diana Krall. Only the best can play Limp Bizkit.
-
Agree with what hardy says about extra.
The other way to pay the loan off early is to split your monthly payment in half. Pay 1/2 say the 1st then pay the other half the 16th.
This way you're paying off early plus you're not paying additional.
Only thing is you have to check if your loan allows that.
Some have fine print on paying off early and/or splitting up your payments. -
It sounds like your annual mortgage interest amount has now fallen below the standard deduction amount, so that interest no longer comes into play from a tax perspective. When they basically doubled the standard deduction amounts back in 2018, itemizing deductions became a thing of the past for many people. You have to have a pretty sizable and/or newer mortgage nowadays in order to itemize.
For 2024, the standard deduction for married filing joint is $29,200, which means you'd need more itemized deductions than that to see any reduction to your tax liability. The single filing amount for 2024 is $14,600."This may not matter to you, but it does to me for various reasons, many of them illogical or irrational, but the vinyl hobby is not really logical or rational..." - member on Vinyl Engine
"Sometimes I do what I want to do. The rest of the time, I do what I have to." - Cicero, in Gladiator
Regarding collectibles: "It's not who gets it. It's who gets stuck with it." - Jimmy Fallon -
Yep, what he said. We have not been itemize in years. Makes filing a whole lot easier on the brain too.Yep, my name really is Bob.
Parasound HCA1500A(indoor sound) and HCA1000(outdoor sound), Dynaco PAS4, Denon DP1200 w/Shure V15 Type V and Jico SAS stylus, Marantz UD7007, Polk L600, Rythmik L12 sub.
