Well, it is that time of year. TAX TIME!!! And we are all looking for the most write off’s we can. And owning a home has many. One special deduction for the year 2011 is that you can write off Mortgage Insurance. This was not true in the past and at this point it does not look like you will be able to write it off in 2012. But, who knows what will happen in the future. Here are the exact rules for being able to write off your Mortgage Insurance on your 2011 Tax Returns:
1. Your purchase or refinance loan must close before Dec 31st, 2011
2. Household income must be $100,000 or less to get the full write off of the insurance premium.
3. The amount of the write off is reduced by 10% for every $1000 over $100k. With it phasing out at $109,000. meaning if you make over $109k as a household you can not write off mortgage insurance
4. It applies to your primary home and one other residence that the tax payer uses.
5. All forms of mortgage insurance qualify for this. So if you have a FHA or conventional loan, they qualify. If you have paid upfront mortgage insurance with a VA,FHA or USDA loan you can also use this as a tax deduction. The amount is just divided over a 7year period.
This is great news!! I am not a CPA, so please contact your tax preparer with any specific questions. Mortgage Insurance is just one thing to take into account when choosing a loan. Call me today to make sure you are getting the best mortgage possible.