I want to know if we are still able to take the mortgage insurance tax deduction.

vish3
Contributions:10

I am evaluating the 90/10 loan and the straight loan with 90% or FHA upto 96.5%. I have heard that mortgage insurance premiums and monthly mortgage insurance are not tax deductible anymore. (Until congress passes some bill).

Anyone has any idea on where we stand on this.

Flag content

February 22 - Baltimore

E-mail Share RSS

Answers (3)

Clay Branch, "Georgia Loans"
- 5.0/5.0
- (1 review)
Contributions:7836

See the article below, it explains why no MI deduction for 2012, so far anyway. Look at a Jumbo LPMI loan, around 5% and has a better tax write off too. ( unless they eliminate the mortgage interest deduction )

http://articles.latimes.com/2012/jan/15/business/la-fi-harney-20120115

Flag content

February 22

wayne lancaster, "funds2"
- 0.0/5.0
Contributions:1177

I too have seen that Mortgage Insurance is no longer deductible as of 01/01/2012. The provision that allowed deduction for past several years was not extended by Congress at end of 2011. Double check with a CPA or IRS. The interest on a 10% second would be deductible. With the new lower MI premiums on a conventional 90% LTV , it would be worthwhile to compare the 2 options.

Flag content

February 22

sunnyview
Contributions:25139

You might be able to find the information on the IRS publication 936 page for that info here. I think that they have an example that lays out what you can deduct for home mortgages at least for 2011.

It looks like the law may have changed though for 2012. You can check that out on nolo here. Hope it helps.