I just read this bit of news that is noteworthy for many many homeowners ... it came from the PMI newletter.. and here is a bit about the article.   Relating to your 2008 tax return:

 

Thanks to the new federal law extension that allows eligible borrowers with adjusted gross incomes up to $100,000 to deduct 100% of their 2007-2010 borrower-paid MI premiums on their federal tax returns*.

The law is effective for transactions closed in 2007-2010. MI premiums paid in those years may qualify for tax deductibility on borrowers' federal tax returns as follows:

  • Borrowers with adjusted gross incomes up to $100,000 may deduct 100% of their 2007-2010 premiums.
  • Deductions are phased out in 10% increments for borrowers with adjusted gross incomes between $100,000 and $109,000.

When determining loan options that best meet your borrowers' individual needs, make sure to consider the following benefits of a loan with MI:

  • MI premium payments are fixed and unaffected by rising interest rates
  • MI is cancellable if borrower-paid**
  • MI payment period is often shorter than term of piggyback
  • Helps preserve access to future home equity
  • Both loan interest and borrower-paid MI premium may be tax-deductible!


"The extension of this federal law has the potential to help thousands of low- and moderate-income Americans secure affordable mortgages that keep them in their homes and keep their communities strong."

This is news for many homeowners who are paying Mortgage Insurance, ask your lender what portion of your house payment is PMI or MI and make sure your accountant or tax preparer knows about the new guidelines.

If you are searching for a new home in the Austin Real Estate Market please call me, I can help you.  gailnttexas@gmail.com or Gail Tassey 512-217-9482  Keller Willia

South Austin Real Estate

 
Post is included in group: Austin Texas Realtors
Post is included in group: Bright Ideas
Post is included in group: Lone Star Real Estate Professionals
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Post is included in group: Buyer Information - What Buyers Need to Know in Today's Market

13 Comments on Changes in Mortage Insurance Deduction 2008 Tax Return Information

JAN
17
2009
381,187 Points 2 Featured Posts Outside Blog Attended Rain Camp

Gail thanks for the reminder.  I already emailed my clients to let them know.  Hopefully everyone else will do the same.
10:59am • #1
361,159 Points 31 Featured Posts Outside Blog Hit Router

Thanks for the update - unsure if it was extended, Gail.

Also appreciate the detail!

DEAN & DEAN'S TEAM CHICAGO
11:03am • #2
263,465 Points 8 Featured Posts Outside Blog

John, thats an awesome idea, I will include that next week when I send out the Homeowners Exemption letter for the buyers I sold to last year.
11:03am • #3
263,465 Points 8 Featured Posts Outside Blog

Dean, according to the PMI newsletter it was extended until 2010.. a great thing for many homeowners in this economy.  Thanks for stopping in and your comments.
11:04am • #4
1,330,738 Points 189 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Hello Gail. Great news. Any deduction we are entitled to we should take. Thanks for the new law details. You are on top of everything.
11:10am • #5
263,465 Points 8 Featured Posts Outside Blog

hi Gary, well not everything, but I try to keep an eye on Taxes.. I think any ruling that one can use they should.  Those rules were made for everyone not just the priviledged few.. the way to get folks to use them to is tell them about it.  Another reason I love AR.  we can tell and tell and tell.  :)
11:12am • #6

Good reminder. The potential to deduct PMI (Private Mortgage Insurance) should be considered when comparing a loan with PMI and a loan without; the one without PMI may have a higher interest rate to account for the lack of PMI.
11:31am • #7
263,465 Points 8 Featured Posts Outside Blog

Stephen thats an excellent point.  Thanks for bringing it up. :)
11:35am • #8
725,720 Points 63 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Hi Gail... I had heard this info from someone but had not seen the details in writing!  Thanks for sharing it with us! 
4:24pm • #9
JAN
19
2009

Thanks for passing this along, Gail.  I am featuring it in the group: Buyer Information - What Buyers Need to Know in Today's Market.
7:04am • #10
263,465 Points 8 Featured Posts Outside Blog

Steve, your welcome, and thank you for stopping by.

Jeannie, thank you !!  I love your group Buyer Information, I believe it could be a wonderful resource for buyers.
7:51am • #11
FEB
17
2009

Gail, thank you for this great post.  I have already emailed my 2008 buyers.  I'm sure they can use the info.
7:52pm • #12
AUG
29
2009
466,662 Points 2 Featured Posts

Gail, inciteful, I really appreciated the information in detail.
8:57am • #13

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