Property Search

Mortgage Insurance Premiums and Tax Deductiblity Through 2013

This falls into the “Good to Know” category of life: Mortgage Insurance Premiums are Tax Deductible Through 2013

Tax FormIf you bought a home or vacation home and didn’t put 20% of the purchase price down as down payment, the odds are good that you are paying mortgage insurance (MI). It may have been financed as an up-front premium or may be paid monthly. Until recently, MI premiums were not tax deductible.

As part of the American Taxpayer Relief Act of 2012, borrower-paid MI premiums are now tax-deductible through the year 2013. This applies to when the money that is borrowed is to buy, build or substantially improve a residence, provided the funds are secured by the same residence.

Homeowners can deduct mortgage insurance premiums paid on their primary residence and one other qualified residence (non-rental second homes) just as they do with mortgage interest.
For more information on income qualifications and allowable deductions, check out MGIC’s MI basics: tax-deductible MI

(Please consult a tax advisor to when determining eligibility of this, or any tax deduction.)

Thank you to Holly Smith, Pacific Residential Mortgage for bringing this to my attention.

Powered by 3G Creative Studio