Prepaid Interest Tax Deduction For Knox County Home Buyers

Tax Day is only a few days away! One of the many benefits of home ownership is that the interest you pay on your home mortgage is tax deductible. Your lender sent you a year-end statement back in January showing the interest you paid for the year. This number should be used on your tax return.

In addition to this, Knox County home buyers can also deduct the pre-paid interest, which was paid at settlement. This pre-paid interest is not reflected on your lender's year-end statement. It is documented on your HUD-1 statement from closing. The HUD-1 is the document that reflects all the monies related to your transaction. Add this figure to the figure your lender provided for a total of all the interest you paid for the year.

More information on home mortgage interest can be found in IRS Publication 936. for more information on Knox County real estate, visit my website or give me a call at 740-397-7800.