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PMI insurance deductible beginning in 2007

December 17th, 2006 at 08:21 am

I just noticed that the newest tax legislation will allow taxpayers to deduct premiums paid for mortgage insurance beginning in 2007.

Mortgage insurance is typically required when home buyers purchase a new home with less than 20 percent down.

Mortgage insurance premiums typically range from $50 to $150 per month, which could mean a $600 to $1,800 deduction on your tax return.

This deduction is only available to taxpayers who itemize, but if you're a home owner (especially if you've just purchased your home) you should have enough mortgage insurance, real estate tax, and other deductions to itemize.

Prior to this tax law, only the interest paid on a mortgage was deductible.

This deduction won't help everyone. The deduction will be limited to taxpayers with adjusted gross income below $110,000.

Finally, you're out of luck if you are already paying mortgage insurance. This deduction will only apply to mortgage insurance contracts issued in 2007, and it's set to expire on December 31, 2007.

1 Responses to “PMI insurance deductible beginning in 2007”

  1. Amber Says:

    Thanks for the info i will pass it along

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