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Stephanie Said:

If my taxable income is less than my mortgage interest can the remaining amount dedcuted in the next tax year?

We Answered:

Mortgage interest is deductible only in the year paid.

You might be able to pay two years of real estate taxes in 2009, plus an extra month of mortgage interest (pay January 2010 interest in December 2009).

Antonio Said:

What are the tax benefits of being debt free (mortgage)?

We Answered:

Too many people confuse the tax deductability of mortgage interest with being a huge benefit that one should keep.

You are always, always, **always** better off not to pay the interest in the first place, whether it is tax deductable or not.

Many people also ignore the fact that if you don't itemize, you still get the standard deduction even if you don't have a mortgage. This new standardized deduction will replace your itemized deduction making the loss of the deduction that much less noticable.

So do it, and congratulations!

Joanne Said:

If i am given a second home, mortgage free, would it affect my current mortgage?

We Answered:

you would have to pay property taxes, home insurance, maintenance and or vandalism repairs and parts, applied violations, etc... and this could put a hardship on what you are already dishing out unless you are sure you have the funds. on the other hand this could also make the perfect rental income property if attended to properly. Income properties are great for adding to retirement portfolios.

Melinda Said:

Question about the "bailout"... Why don't they just make mortgage interest tax-free for the note holders?

We Answered:

Since many mortgage backed securities are held by tax-free funds, your solution would make little difference.

The problem is that:

1. Many of the loans were made to people with bad credit

2. Home values have fallen to levels where the houses are worth less than the amount owed.

3. Greedy Wall Street firms put together securities that were so complex that many people who bought them did not realize how risky they are.

The first two points caused homeowners to default on their mortgages, so no payments are being made. The third one meant that people who thought they had very little risk actually had a lot of risk.

Jerome Said:

I am taking a buyout at work. Can I put a portion of the $ into a 529 plan tax free?

We Answered:

No. Money going into a 529 plan is after-tax dollars. However, depending on what sate you reside in, and the state the 529 plan belongs to, you could get a deduction from your state taxes. Also, the money in the 529 will grow tax free and will also be tax free once withdrawn if used for eligible college expenses.