Which year can a charged purchase be deducted?

by Don Bentz
(Greeley, Co)

Which year can a charged purchase be deducted? Year of of charge or year of payment?

We wish to purchase(charging in December) matteress in 2016. Payment would be due in January 2017. Which year is the housing deduction taken?

Comments for Which year can a charged purchase be deducted?

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Housing Expenses
by: Vickey

In the year of purchase (charge). The date would be the one on your purchase receipt regardless of when you pay for the item.

However...remember that you can only claim the lesser of 3 amounts:

1. The amount actually spent on eligible housing expenses.
2. The fair market rental value plus furnishings and utilities.
3. The amount officially designated in advance as HA.

So ... if you think that your housing expenses for this year .. are going to be higher than the other 2 amounts...it may be better to postpone your mattress purchase until the following year =)

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