QUESTION DETAIL
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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.