Private Mortgage Insurance Is Now Tax Deductible!
That’s right! This totally changes the decision between whether to get private mortgage insurance or to get a piggyback loan because now, for mortgages originating in 2007, you will be able to deduct PMI as if it were mortgage interest.
Here are the caveats:
• The tax deduction applies only to mortgages that are closed in 2007. If you have a loan with mortgage insurance in 2006, you won’t be able to deduct the premiums in the 2007 tax year unless you refinance in 2007.
• There are income limits. You get the full deduction if your adjusted gross income is $100,000 or less.
• This is a one-year deal, and Congress would have to renew the deduction to make it apply for the 2008 tax year and beyond.
• If you take the standard deduction instead of itemizing deductions, the new law makes no difference to you.
This entry was posted on Monday, December 18th, 2006 at 8:49 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
One Response to “Private Mortgage Insurance Is Now Tax Deductible!”
Oh well, I could have used that a few years ago. I am just happy to have gotten rid of PMI.
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