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When to stop the checks?

Asking Google to hold the checks for a while

4:22 am on Oct 5, 2007 (gmt 0)

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10+ Year Member

joined:Nov 20, 2004
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Here is something that I've been pondering (for US tax payers):

Say you have a mortgage at 6% and any cash you have is placed to work against that mortgage in a synthetic mortgage checking account. (Ignore the method it's not relevant here.)

If you continue to receive AdSense checks through to the end of the year then you will pay tax on them at the beginning of next year. In the meantime that money is earning you 6% tax free against the mortgage.

If you elect to have Google hold your checks for the last 3 months of the year, then you delay paying taxes on that income for a year. In doing so you lose the income that you would have been receiving from the money for the last 3 months but gain the interest earned on the income on the tax you have delayed for 12 months.

According to my calculations you should be ahead by doing just the last 3 months of the year.

Has anybody else done this calculation?