Posted on: 17th Nov, 2010 01:14 pm
Hi. I purchased a home in October of 2010 with a FHA loan and paid close to 3,000 in upfront mortgage insurance premium - maybe more. This same tax year, I expect to make less than 16,000 in income. Considering my other deductions for this year and my low income, my tax burden for this year will be zero, not even counting the deduction i could take for the upfront premium paid.
So rather than 'waste' the deduction by also including it for this year, I would like to know if I could somehow deduct the upfront premium for the 2011 tax year, where i expect to be making more.
I think I can amortize this premium over several years, but I would rather just deduct it all in one year if possible, just not 2010, where I dont "need" to use it. Is amortizing it my only option? I'd hate to do that because again, for 2010 it isnt needed, so im still not making the most of my deductions.
I asked the IRS this question, and after waiting weeks for a return call, just missed their call back. I listened to a voice mail and got an answer that wasnt even close to my original question.
So rather than 'waste' the deduction by also including it for this year, I would like to know if I could somehow deduct the upfront premium for the 2011 tax year, where i expect to be making more.
I think I can amortize this premium over several years, but I would rather just deduct it all in one year if possible, just not 2010, where I dont "need" to use it. Is amortizing it my only option? I'd hate to do that because again, for 2010 it isnt needed, so im still not making the most of my deductions.
I asked the IRS this question, and after waiting weeks for a return call, just missed their call back. I listened to a voice mail and got an answer that wasnt even close to my original question.
Hi cjoc!
Welcome to forums!
It will be better if you could contact a tax adviser and take his opinion in this matter. He will be able to guide you in a better manner in this regard and let you know whether or not you can use the deductions in 2011.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It will be better if you could contact a tax adviser and take his opinion in this matter. He will be able to guide you in a better manner in this regard and let you know whether or not you can use the deductions in 2011.
Feel free to ask if you've further queries.
Sussane