Mortgage Insurance Tax Deduction Unchanged After U.S. Tax Relief Law of 2010

 

The U.S. Tax Relief Bill of 2010 has been signed into law and among other things extends Mortgage Insurance tax deductibility through December 31, 2011.

So now is a good time to consider MORTGAGE INSURANCE to buy a home and take advantage of deductibility of premiums from income taxes.

MORTGAGE INSURANCE is an insurance policy that compensates lenders or investors for losses due to the default of a mortgage loan.  Mortgage insurance can be either public or private depending upon the insurer (Wikipedia).

 

Tax Deductibility of MORTGAGE INSURANCE premiums  -  (see the IRS web site)

• The home purchase or refinance loan must close between January 1, 2007 and December 31, 2011
• Household income must be at or below $100,000 for a full deduction of premium
• The premium deduction is reduced 10% for each $1,000 of income over $100,000
• The premium deduction is prorated in the first year based on the month the loan closes
• Applies to primary residence and one other residence purchased for personal use by the taxpayer
• Monthly, annual, and single MI premiums are eligible.  Financed premium deductions should be taken over a seven year period.

______________________________________

This is for information only and is not the providing of legal or tax services.  See the web site of the IRS about mortgage insurance.  Also contact a lawyer or income tax professional for information about mortgage insurance and your own income tax situation.

______________________________________

If you want to see seller and buyer opportunities for homes and real estate at Orange County, California, or at Newport Beach,  at Irvine,  at Laguna Beach,  at Corona del Mar,  at Newport Coast, or at Costa Mesa, please contact us.  Thanks.

Harrison K. Long - solutions for real estate and business - REALTOR® and broker associate, Coldwell Banker Residential Brokerage - 949-854-7747 (phone) - ExploreProperties@gmail.com (email) - CA DRE 01410855

            

We list and sell homes and properties at Orange County, California. 

Posted via email from Explore OC Homes