Posted on: 15th Feb, 2007 12:25 pm
I want to get certain whether it is true or not, heard that in 2007 mortgage insurance premium would be deductible. Is it?
Yes that is true and deduction will apply to mortgages that close in 2007. But there are income limits. Full deduction is available if gross income is $100,000 or less.
Larmore, the deductibility decreases by 10% for every $1,000 in annual income that exceeds $100,000. What it means is that income greater than $110,000 will not get any deductibility.
I would like to add that it is only for 2007 & Congress would be required to renew it to make it applicable for 2008 and beyond. There is a possibility that Congress will extend the deduction.
I have some more details about this act which was passed by Congress.
Deductibility of mortgage insurance premium has been included in the Tax Relief and Health Care Act of 2006. And as per estimates from the mortgage insurance industry homeowners are expected to save something close to $91 million at the time they file their return nest year.
One more thing that others have not mentioned is that income limit of $100,000 becomes $50,000 for married people filing separately. The maximum beyond which deduction is not available is $55,000 for such married people who file separately.
Deductibility of mortgage insurance premium has been included in the Tax Relief and Health Care Act of 2006. And as per estimates from the mortgage insurance industry homeowners are expected to save something close to $91 million at the time they file their return nest year.
One more thing that others have not mentioned is that income limit of $100,000 becomes $50,000 for married people filing separately. The maximum beyond which deduction is not available is $55,000 for such married people who file separately.