First Weber Group
Certified Distressed Property Expert
You will get a tax form from you bank showing what you are allowed to deduct. That form will show exactly what they will be turning into the IRS as interest that you have paid. Simply take that form to your accountant or tax preparation expert along with all your other documentation.
Hope this helps,
You can claim it, but only the amount that you actually paid. You should be getting a 1098 shortly from your bank as in previous years, and the interest can be claimed for 2009. If you haven't made too many payments then the interest paid will be low, but whatever it is can be claimed on your return.
Even if you haven't made a single mortgage payment all year you may still have some interest paid if you had an escrow account with your lender.
For 2010 you may have issues because whatever amount you are short with your mortgage will be "forgiven debt" for which you will recieve a 1099C in 2011 and in some instances could be taxable.