Its Tax time again.. New Year- New Tax laws!
I’ve had a lot of questions recently as borrowers are doing their taxes about the tax deductibility of paid mortgage insurance premiums. As always, consult your tax advisor regarding your particular situation.
I’ve included a great piece with a chart that shows percentage of mortgage insurance tax deductibility according to adjusted gross household income. Thanks to our friends at MGIC!
Mortgage insurance paid on a qualified residence- one primary residence and one non-rental second home, is the only tax deductible mortgage insurance-not on rental properties.
Mortgage insurance is 100% tax deductible up to adjusted gross household income before itemized deductions of $100,000. It phases out at a max adjusted gross household income of $109,000. You’ll have to itemize your deductions just like you would for real estate taxes and mortgage interest paid.
The deduction is NOT restricted to first time buyers.
Here’s to a great 2015 in real estate!!
Feel free to call or email questions any time- I’m here to help!