Tax Aspects of Alternative Mortgage Instruments

Cover Tax Aspects of Alternative Mortgage Instruments
Tax Aspects of Alternative Mortgage Instruments
Daniel M Daniel Mark Holland
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" Iherefore the mortgagor would carry o\er into year three. S742. 03 of interest incurred in year two. But not taken as a deduction in that year. Finally, with the interest charge totalling SI. 614. 37 in year two. And aggregate payments of SI. 05 1. 65 made at the end of that year, out- standing principal will rise bv the excess of interest over pavments or bv S562. 72 i. E. , from S20, 1 79. 61 to 520, 742. 33.
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i 4 duct same theV be 1 inter in ti. I \ov, \ 'i mec; 4 purr 'i choiw . ) Gi^c' i choo-n accac4 taxa' i the J-i "Jungkind Phot Supply Co v Rennniel. (DC). 1926. (ll was not apparent in this case whether the ta. Xpaycr wa. S on the cash or accrual basis. ) Computed as follows: Nominal interest rate: Interest via inflation adjustment: Total interest: a)3%($20. 179 6l) = SW)5. 39 b) (5f-f . X S20, 179. 61 - (SI, 051.


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