Minute Menu Expenses - Mortage??

[SunflowerMama]

I am recording all my non-food expenses in the MMK software and was wondering about our monthly mortage. I saw an option for Apartment/Home Rent and then home insurance and tax but nothing for a mortage payment.

Are you able to claim a TS percentage of your monthly mortage? If so where do I add it?

Any help would be greatly appreciated. Thanks so much!!

[legomom922]

It's either under Home,which is under Home & Repairs. It comes up as depreciation, and any expense that I have that comes upunder that, I have no idea how to figure it, so I haven't filled that part in yet, just waiting for a day when I have time to research it, or Rent and Home rent . You would think that would make that alot clearer! Let me know how you make out.

[kidkair]

You can depreciate your house but I don't know how through MMK I just do it though my tax program. In MMK there is a TS% for the taxes on the house but mortgage payments are not TS%.

[legomom922]

Mortgage is not T/S??

We really need a MMK/Tax board here!

[SunflowerMama]

Thanks everyone! I also agree we need a MMK forum.

[legomom922]

Maybe Michael could put a MMK thread at the top of the board like those other 3 or 4 are? You know, the ones that never go away?

Or just start a MMK thread, and keep it going??

But you still don't have an answer to your question..do you..

[misol]

I think I remember seeing somewhere that you can only deduct mortgage interest and property taxes, but not the actual mortgage payment. If you rent, you get to deduct a portion of your rent, but if you own the home you just depreciate.:confused:

[Jewels]

I guess I've just been putting it under home or apartment rent, but maybe thats not right, I thought I remembered my tax lady last year doing TS% of our monthly mortgage, but maybe she did something with depreciation, either way it probably still ends up being about the same for deduction, I think, Its a pretty big chunk.

[TomCopeland]

Mortgage payment

Your mortgage payment consists of principal and interest. The interest is deductible after applying your time-space percentage (there is an expense category for this). Your principal payment is not deductible. Instead, you get this expense through depreciation of your home. So, don't enter your mortgage payment as an expense in Minute Menu.

[SunflowerMama]

Great thanks Tom!! I was hoping you would chime in on this one .

[My4SunshineGirlsNY]

I agree...we need a tax related forum...I have so many questions and don't know where to find the answer.

I also think I have to find a new tax preparer..my accountant told me last year not to worry about claiming depreciation of my home because if I go to sell it, it's a pain. I really don't see myself selling my home and I think he just didn't want to go through the hassle? I don't know, but he is not used to doing daycare taxes so I feel I can't even ask him questions because I don't think he will know the answer.

[kidkair]

I agree...we need a tax related forum...I have so many questions and don't know where to find the answer.

I also think I have to find a new tax preparer..my accountant told me last year not to worry about claiming depreciation of my home because if I go to sell it, it's a pain. I really don't see myself selling my home and I think he just didn't want to go through the hassle? I don't know, but he is not used to doing daycare taxes so I feel I can't even ask him questions because I don't think he will know the answer.

I heard that not depreciating your house would cause a lot of problems when you sell it. You should definitely find someone more suitable for your taxes.

[My4SunshineGirlsNY]

I heard that not depreciating your house would cause a lot of problems when you sell it. You should definitely find someone more suitable for your taxes.

I got funny vibes when he did my taxes last year...I was only registred from Sept.-Dec. so thankfully it wasn't the whole year but now this year is a full year, I want them done correctly and to my advantage. I had used him for years but I didn't do daycare, it's a whole new ballgame/rules and since I don't know what I'm doing, I need an accountant who does.

[TomCopeland]

You should always depreciate your home. When you sell your home you must pay taxes on the depreciation you were entitled to claim after 1997. So, if you don't claim the depreciation you will still have to pay taxes on it! Tell you tax preparer to file IRS Form 3115 with your 2010 taxes. This will allow you to recapture any previously unclaimed depreciation on your home (or any other depreciation you didn't claim) for as many years back that you didn't do this. Tom

[Jewels]

Your mortgage payment consists of principal and interest. The interest is deductible after applying your time-space percentage (there is an expense category for this). Your principal payment is not deductible. Instead, you get this expense through depreciation of your home. So, don't enter your mortgage payment as an expense in Minute Menu.

So does this mean you pretty much deduct your mortgage interest twice? since we deduct the mortgage interest on our regular part of our taxes, then we can deduct it again, with the T/S%?