2006-09-21 20:32:00 · 4 answers · asked by Jennifer 2 in Business & Finance ➔ Taxes ➔ United States
not penalties and interest on taxes. on a mortgage it just counts as more interest or as a bank fee, so it is possible if you meet other criteria to write it off.
2006-09-23 15:51:53 · answer #1 · answered by KariM 2 · 0⤊ 1⤋
That kind of depends-is it a penalty, or additional interest charged because you didn't pay on time? If the mortgage holder assesses it as additional interest, then it will show up on your 2006 Form 1098 (statement of loan interest paid). If it's a late charge, like a $50 flat fee for late payment, then no. Penalties aren't tax deductible.
2006-09-22 09:07:07 · answer #2 · answered by SuzeY 5 · 2⤊ 0⤋
You can only write off the interest included on Form(s) 1098. If the penalty interest qualifies, it will be included in the amount on the forms, if not, then no you can not deduct it. The other two answerers are correct as well.
2006-09-22 11:14:40 · answer #3 · answered by johngrobmyer 5 · 0⤊ 0⤋
Yes. Late payment interest is a deductible expense and will be included on the Form 1098 that you will receive form your mortgage company. Do NOT add it in again.
2006-09-22 07:23:59 · answer #4 · answered by extra_37 4 · 2⤊ 0⤋