Posted on: 29th Jan, 2010 12:17 pm
My question is if I recieved money, and paid off my mortgage by using more than half of the money I recieved, can I use that as a deductible on my income tax return? Or will I have to pay taxes on the entire amount of money I recieved??
>>Or will I have to pay taxes on the entire amount of money I recieved??
You have to pay taxes on the entire amount received. You can offset it with deductions, but paying off a large portion of your mortgage won't help offset it, because the money will be applied towards principle, not interest.
You have to pay taxes on the entire amount received. You can offset it with deductions, but paying off a large portion of your mortgage won't help offset it, because the money will be applied towards principle, not interest.