Don't Forget: PMI is Deductible
As April 15 tax day approaches, here is a reminder for home buyers with mortgage insurance.
Home owners with adjusted gross incomes of $100,000 or less can deduct the full cost of their government or private mortgage insurance premiums on their 2007 federal returns.
Families with incomes between $100,000 and $109,000 are eligible for a reduced deduction.
This is a new tax break that Congress has approved through 2010.
"On average, this year's tax break could be worth $350 per taxpayer — an annual deduction that qualified home owners can take each year through 2010," says Kevin Schneider, president of the Mortgage Insurance Companies of America (MICA).
Source: MICA (03/26/08)