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Mortgage Insurance Premiums Deductible from next year

Posted on: 10th Dec, 2006 08:07 pm
Americans will get the chance to get tax deduction benefits from the premiums on private and government mortgage insurance by next year. Borrowers making less than $1,00,000 a year will be allowed to write off the total amount of premiums. Others earning more than $1,00,000 are not eligible for the write-off.

If you are interested to know about PMI and how it works, refer to the section on this topic.
but is it declared already?
Posted on: 10th Dec, 2006 09:32 pm
No, not yet come into effect. The Bill has been passed by the House and the Senate and will be effective from some time next year.
Posted on: 10th Dec, 2006 09:54 pm
Hi all,

That's a good gesture from the US congress.

I came to know yesterday itself that eligible homeowners paying for private mortgage insurance and government insurance can now get deductions on the payments and save around $300 or more.

Looks to be a great year for those qualifying with low down payments.

Thanks,

Caron.
Posted on: 10th Dec, 2006 10:01 pm
Making 20% down payment isn't possible for everyone, which is why buyers have to pay private mortgage insurance (PMI). If the tax breaks on PMI are offered from next year, that"ll be a boon to all homeowners putting in low down payment. But then, one should keep in mind that not all are eligible, hence it is better to pay 20% down and borrow less money.

Jessica :)
Posted on: 10th Dec, 2006 10:53 pm
The insurance premiums will be deductible from this year provided the mortgage is taken out in 2007 and not prior to that. I feel the law is fair to those going for a loan this year but unfair to others who has yet to pay off their loans.
Posted on: 14th Jan, 2007 09:25 am
Hi,

One can qualify for the tax break if he earns $100,000 as adjusted gross income.

The tax deduction benefit is only for the tax return filing of 2007, that is, for a year. Borrowers will have to wait and watch if the government would renew the deduction and make it applicable for the 2008 tax year also.

The tax break however, will not apply for those taking standard deduction instead of itemized deductions.

More details are available at http://www.mortgagebankers.org/documents/NewsLink/Letters/MIQAFinal.pdf .

Thanks,

Sara
Posted on: 14th Jan, 2007 10:25 am
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