Duplex: Overpay on mortgage

[Michael Doll]

Hey everyone, 

I just bought my first duplex and was wondering if I decide to overpay on my monthly mortgage payment, to save on interest paid over time, am I able to expense any of the over payment made against the income from my tenants on my taxes?  

[Andrew Johnson]

@Michael Doll The other thing that you want to consider is that it should also lower (by tiny, tiny amounts) you are paying in mortgage interest.  Over time your tax deduction (mortgage interest) will lower while your income will grow from rent increases.  This might not play out over 12 months but it will over 12 years.  Accordingly, the amount of taxable income will grow over time.  Assuming your able to sustain overpayments your choices are likely:  pay less mortgage interest to the bank or pay more in tax to the government.  Decisions...decisions...decisions...