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Buried in tax returns...

February 18th, 2007 at 08:04 am

I've been too busy to blog for a while, because I am buried in tax returns.

Not that I'm complaining; over half of the returns that I've received so far are from new clients who were referred to me by current (happy) clients. Nothing makes me feel better than to get a referral from a client, because it tells me I'm doing a good job!

Anyway, the one theme I've noticed this year - everyone, and I mean everyone is asking about the telephone tax credit! Just cracks me up. It seems like such an insignificant tax break to me compared to other recent tax law changes, but everyone is so focused on the telephone tax credit. I guess I can blame the media for that one, since there are so many articles about it? I even blogged about it myself, but just to keep my clients from asking me about it! Lol...

Enough ranting, it's looking to be a beautiful day here after a lot of cold and snow, so I'm going to enjoy it!

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.