Fiction: My mortgage interest is based on the current month (i.e., in December, I'm paying December's interest; in January, I'm paying January's interest), so there is no tax deduction benefit in making my January payment in December.

Fact: Unlike rent, which is paid beforehand (i.e., January rent covers occupancy for January), your mortgage payment represents interest for the previous month of occupancy. Thus, your January payment reflects interest for December. So, if you pay your January* payment in December, that interest is tax-break-eligible for the current tax year.

*Please note: This is only true of your January payment. You should consult a professional about your unique taxation circumstances.


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