Section 163 allows deduction for interest paid or accrued. Can I deduct mortgage interest accrued this year but not paid this year?

ANSWER

Expert Edward Wilmsen's Answer:

Not if you are a cash basis taxpayer and you are deducting mortgage interest on your personal return. If you are talking about a corporation, LLC or other business entity and you have been filing on an accrual basis then yes the expense is deductible when the legal obligation to pay is established. 

Edward Wilmsen, CPA

Illinois

30 yrs experience

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