The government extended mortgage Insurance (MI) tax deductibility through December 31, 2011. As a result, you can deduct MI premiums from your income taxes. What’s more, MI can be canceled once you build enough equity in your home.
Details on Tax Deductibility for MI:
- MI is deductable for purchase and refinance loans;
- Your loan must close by December 31, 2011;
- For a full premium deduction, your household income must be at or below $100,000;
- For each $1,000 of income over $100,000, your premium deduction is reduced 10%;
- In the first year, your premium deduction is prorated based on which month your loan closes;
- You can apply your premium reduction to your primary residence and one other residence purchased for personal use;
- Monthly, annual, and single MI premiums are eligible for preimum deduction.
Please note: PrimeLending does not provide tax advice. Consult your tax advisor for questions about your eligibility for this tax deduction.
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