is it lawfull to deduct a lumpsum of monies paid on ones residence to reduce the principal
2007-03-01 04:39:49 · 6 answers · asked by peter h 1 in Business & Finance ➔ Taxes ➔ United States
it is lawful if the person that it is borrowed from has the borrower's permission to deduct more then the principal
the more monies paid on the principal, the more that is saved over the loan in interest etc
a lot depends on your particular mortgage loan and how it was set up, if in doubt you can get a lawyer to look at the terms/agreements etc and help you with it.
That would not take over an hour of time and well worth it to be sure that you are doing things the best for your monies.
2007-03-01 04:45:51 · answer #1 · answered by Anonymous · 0⤊ 2⤋
Its not a matter of it being lawful rather it is the fact that you cannot .When you pay your mortgage a precentage of the interest you paid is deductable. When you pay a large or any lump sum it is applied to the principal amount. I would suggest that if you have a lump sum first look at improvements on your home that may increase the value ie; Painting , roofing,and other repairs if needed ...other wise invest the money for a higher rate of return. I can help further if you need it just write to me at bill67co@yahoo.com
2007-03-01 12:47:22 · answer #2 · answered by bill g 1 · 0⤊ 0⤋
As long as the lump sum doesn't pay off in total on a mortgage that has a penalty for early payoff. Whatever you pay on principal ahead of time is deducted as of date received.
2007-03-01 13:06:31 · answer #3 · answered by richard w 1 · 0⤊ 2⤋
No, you cannot deduct principal under ANY circumstances.
2007-03-01 14:32:45 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
No, that's not deductible.
2007-03-01 17:48:33 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
No.
2007-03-01 12:47:20 · answer #6 · answered by Anonymous · 0⤊ 0⤋