Mortgage Interest Paid, Do I Prorate?

[My4SunshineGirlsNY]

My business closed in Aug. of last year, I have a statement for my mortgage interest paid for the year, do I need to prorate this amount since I was only in business 8 months last year? What about my real estate taxes, would that have to be prorated as well??

[Michael]

Don't know if Tom's answer at the bottom of this thread answers it: https://www.daycare.com/forum/showthread.php?t=26286

[TomCopeland]

in business for part of year

My business closed in Aug. of last year, I have a statement for my mortgage interest paid for the year, do I need to prorate this amount since I was only in business 8 months last year? What about my real estate taxes, would that have to be prorated as well??

You enter 8 months of mortgage interest on Form 8829. The same for real estate taxes and utilities and house insurance and house depreciation.

[HelenS1985]

Mortgage Interest Paid Do I Prorate

No - you can only claim the deduction the year you pay it. She is lucky she did not get audited if her mortgage interest was close to her AGI. She is only allowed a deduction for mortgage interest she actually paid herself.