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PMI Tax Deduction Extended Until 2010 | Real estate blog on real blogging (http://www.realblogging.com/pmi-tax-deduction-extended-until-2010 - broken link)
But I can't find anything on the IRS website to back it.
You can take an itemized deduction on line 13, Schedule A (Form 1040), for premiums you pay or accrue during 2007 for qualified mortgage insurance in connection with home acquisition debt on your qualified home.
Mortgage insurance premiums you paid or accrued on any mortgage insurance contract issued before January 1, 2007, are not deductible as an itemized deduction. Mortgage insurance premiums you paid or accrued after December 31, 2007, or that are properly allocable to any period after December 31, 2007, are not deductible as an itemized deduction.
yes they made it deductible in 2006 if memory serves. till 2010 at which time obama will probably not extend. since he is an avid support of taxes, not tax benefits.
Based on it not really being a big tax-savings, I would check out what your lender can offer in relation to "Lender Paid Mortgage Insurance", or LPMI. I chose this route and it resulted in a slightly higher interest rate, but it ensures you can write off all of your interest, and not have to worry about the PMI payments and tax liability.
For instance, a mortgage lender may offer you 5.75%, with PMI.....or they might be able to offer you 6.0% with LPMI, and most likely that second option will be a lower monthly payment anyway.
Also, the pmi tax deductibiltiy is only if your family income is under 105k annually. So, if you make more then that it is not tax deductible. I may be off a little on the income, by the way but it is around 105k.
If you have a higher income, then Lender paid mortgage insurance or do a piggy back loan to avoid PMI is your best option.
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