The government extended mortgage Insurance (MI) tax deductibility through December 31, 2011. As a result, you can deduct MI premiums from your income taxes. What’s more, MI can be canceled once you build enough equity in your home.
Details on Tax Deductibility for MI:
- MI is deductable for purchase and refinance loans;
- Your loan must close by December 31, 2011;
- For a full premium deduction, your household income must be at or below $100,000;
- For each $1,000 of income over $100,000, your premium deduction is reduced 10%;
- In the first year, your premium deduction is prorated based on which month your loan closes;
- You can apply your premium reduction to your primary residence and one other residence purchased for personal use;
- Monthly, annual, and single MI premiums are eligible for preimum deduction.
Please note: PrimeLending does not provide tax advice. Consult your tax advisor for questions about your eligibility for this tax deduction.
If you have questions about your home financing, get answers! Please contact us as soon as possible for expert mortgage advice. Call (512) 293-1239 or email maxl@primelending.com.
