Last Minute Tax Strategies – Follow Up

November 11, 2006

The post A Quick Guide for Last Minute Tax Strategies reviews some strategies that H&R Block suggests for reducing our 2006 taxes. There is another strategy that applies to many homeowners that they probably should have included.

Early Mortgage Payments
Strategy
Make your January 2007 mortgage payment before the end of December 2006.

Savings
Increase the amount of your Home Mortgage Interest Deduction for 2006, lowering your tax bill. Read more about How to Deduct Home Mortgage Loan Interest

Things to Consider
Many of us spend more money at the end of the year for the holidays. If this strategy would cause cash flow issues for you and lead to borrowing, don’t use it.

I take advantage of this every year and increase my deductions. This is a payment you have to make, just pay it a little earlier and lower your 2006 tax bill.

Ben

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Ben

Ben Edwards, the founder of Money Smart Life, saved up enough to buy a Nintendo back when he was 12 years old. When he used the money to buy shares of Wal-Mart stock instead, he knew he wasn’t like the other kids… His addiction to personal finance has paid off for his family and now he’s helping you to afford the life that you want. Check him out on the web at Google Plus, Twitter and Facebook.


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