Question

Additional December Payment on Rental Property Not Reflected in TY 2024 1098

Forum|Forum|1 year ago
February 26, 2025
1 reply
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Hi, I made a couple of payments on a rental property in December 2024 - only one of the payments' interest is reflected in the 2024 1098. I thought all interest paid was deducted in the year it was paid? I contacted my bank for a corrected 1098. Bank stated the second December 2024 interest was pre-paid and would be reflected in 2025 1098. However, when I received a February 2025 mortgage statement for the said property it showed paid YTD information (e.g. principal, interest, escrow, etc.) as $0.00. Is the interest on the second mortgage payment made in December 2024 counted in TY2024 or TY2025?

TurboTax Home & Biz Windows

D

DianeW777

It will be counted in 2025. Tax laws does not allow a deduction for prepaid interest which allows only the amount paid that was required to be paid in 2024. The bank will not be required to alter their records for advance interest payments.

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