Interesting question. I paid the full year property taxes and hadn’t even thought about the deduction.
I did some googling… it appears that if you prepay your taxes it’s deductable in the year you paid it (not when it was due.)
It also seems like if you pay your Jan mortgage payment in December you can get that interest portion deducted in 2010. Mortgage payments are in arrears. So a Jan 1st payment is for Dec. If you pay it early the mortgage interest should show on the end of the year statement.
