Discussion:Private mortgage insurance (PMI) is now deductible?
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Private mortgage insurance (PMI) is now deductible?
| 2 January 2007 | |
| Unfortunately, a client made me aware of this. But I can't find anything as to where you can deduct it. As mortgage interest? As a 2% miscellaneous itemized deduction? Can anyone give me a pub or somewhere else to go to research this? Thanks. | |
| January 2, 2007 | |
| This deduction begins in 2007. Search Google for the following: "mortgage insurance" 2007 deductible
| |
Death&Taxes (talk|edits) said: | 2 January 2007 |
| I posted this the other day; it was part of the tax extenders act, but the property must be purchased in 2007 and the deduction supposedly is only for 2007. Existing property does not count, but I read it does apply on refinancing up to the amount of the existing mortgage. Oh yes, AGI limit is 100,000. | |
| 2 January 2007 | |
| It's in the Tax Relief and Health Care Act, signed by the President December 14, 2006. IRC Sec. 163(h)(3) as amended by Sec. 419 of the Act. It applies only for the 2007 tax year, as D&T says, and applies only to contracts issued after December 31, 2006. It applies only to premiums relating to 2007 coverage -- IOW, you can't prepay later years' premiums in 2007 and get the deduction. The deduction is reduced by 10% for every $1,000 of AGI over $100,000 ($500 and $50,000 MFS). So it phases out completely at $110,000 ($55,000 MFS). | |
| 3 January 2007 | |
| Thanks. So, is it deducted as mortgage interest or 2% miscellaneous? Can't find anything that says where to deduct it. | |
Bottom Line (talk|edits) said: | 4 January 2007 |
| But it's not deductible for 2006. You're one year ahead of yourself. Wait until next year's forms/software comes out. | |
| 28 September 2007 | |
| THANK YOU ALL AT TAX ALMANAC...YOU'VE SAVED ME GREAT AMOUNTS OF TIME IN RESEARCH, AND ENHANCED MY UNDERSTANDING TREMENDOUSLY! | |
| 28 September 2007 | |
| No, THANK YOU, Rruth, for using the search!!!! Easy to do! | |
Nancyshoemake (talk|edits) said: | 6 February 2008 |
| just want to confirm this but the pmi fee on a refinance of $3468 (in my clients scenario) is deducted 100% in 2007. The refi occurred in 2007. | |
Nancyshoemake (talk|edits) said: | 6 February 2008 |
| So you are saying it is NOT the lump amount PAID at closing? | |
Death&Taxes (talk|edits) said: | 6 February 2008 |
| Notice 2008-15 | |
Nancyshoemake (talk|edits) said: | 6 February 2008 |
| thank you... | |
| 12 February 2008 | |
| I just want to make sure that I have this correct.
Client buys home in 2005 and has PMI then refinances in 2007 and has new PMI contract. The 2007 PMI on the new loan is deductible? This is deductible because Notice 2008-15 states that a refinance was home acquisition indebtedness? Thanks | |
NANCYSHOEMAKE (talk|edits) said: | 14 February 2008 |
| I also want to make sure I understand this.....I have a client with a purchase FHA loan. PMI was $8500....this gets amortized over 84 months. right? | |
| 14 February 2008 | |
| Nancy, look @ page 5
I think this is what your are looking for! | |
NANCYSHOEMAKE (talk|edits) said: | 14 February 2008 |
| yes. texcpa..i just want to confirm that I understand this correctly. | |
To join in on this discussion, you must first
log in.
