Congress recently passed legislation allowing MI payments to be tax deductible for mortgages closed in 2007. The Mortgage Insurance Fairness Act will allow homeowners with adjusted household incomes of $109,000 or less to deduct some or all of the cost of their MI premiums from their annual income on their 2007 federal tax returns. Eligibility Parameters • Loans closing in 2007 (January 1st - December 31st) that are required to pay private mortgage insurance, FHA Mortgage Insurance Premium (MIP) or the VA Funding Fee. Note: The legislation will be evaluated for extension into future years by Congress towards the end of 2007. • All MI payment options are eligible for deduction under the new law. In the case of the Financed/Single Premium option, a portion of the up front premium may be deductible in the first year. If the law is extended, the remaining portion may be deductible in subsequent years. A tax advisor should be consulted to determine the actual deduction amount. • Purchase and refinance transactions are eligible • Eligible primary residence and second homes are permissible. Additional restrictions for investment properties apply and should be discussed with a tax advisor. Tax benefit • Mortgage insurance premiums will be 100% deductible for households whose adjusted gross income is $100,000 or less • The tax benefit for households with adjusted gross income between $100,001 and $109,000 is based on the following declining scale:
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Coldwell Banker Select - Tulsa, OK
Coldwell Banker Select - Tulsa, OK
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