A $1 Tax Saved is $1 Earned (x $375?)
[Editor’s Note: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced. Please consult your CPA if you need tax advice.]
With that disclaimer out of the way . . . let me suggest to anyone with a mortgage this year-end, tax-savings no-brainer (assuming you have 
the cash — and itemize your deductions on Schedule A): pay your January 2016 mortgage bill before December 31.
Assuming a $1,500 payment and a 25% marginal tax rate, the savings come to $375.
If you like calculating investment returns, that’s an astounding 6,500% (25% x 26 bi-weekly periods).
Try getting that in the stock market!
P.S.: The catch? It’s essentially a one-time gain, assuming the taxpayer elects to make their January mortgage payment early every year thereafter, keeping their total monthly payments = 12.
