AgentInvesting

5 year-end real estate tax breaks worth considering

Mood of the Market

At this time of year, most people have some sort of rush situation happening in their lives. Maybe it's a rush at work to get those annual targets met before you leave for the holidays, or a rush at home to prep for the holidays themselves. But if you are -- or were -- a homeowner, there's a short list of other items you should consider placing on your "rush" list to get done before year's end that have nothing to do with twinkle lights, animatronic Santas or gluten-laden baked goods. 1. Prepay interest. If you have the cash handy, consider paying your January mortgage payment before December even ends. The interest portion of this payment is actually interest that accrued to your mortgage in 2012. So, if you pay it before the end of the year, it will increase the mortgage interest deduction you'll be able to take as soon as you file your 2012 taxes (after Jan. 1). And no, Virginia, you can't just prepay all of next year's payments to boost your tax deductions -...