Wednesday, January 21, 2015 / by Nicole Solari
Are you paying Mortgage Insurance (MI) on your home loan? If so you will want to read on to learn about the new tax deductions for which you may qualify. If you have any questions on this please do not hesitate to reach out to me.
On December 19, 2014, legislation was passed once again allowing for the tax deductibility of mortgage insurance (MI) premiums for qualified borrowers.
The deductibility is effective for purchase and refinance transactions closed after December 31, 2013. MI premiums paid or accrued after December 31, 2013 and through December 31, 2014 may qualify for tax deductibility on borrowers’ subsequent federal tax returns* as follows:
• Borrowers with adjusted gross incomes below $100,000 may deduct 100% of their MI premiums.
• For borrowers with adjusted gross incomes from $100,000.01 to $110,000, deductions are phased out at 10% increments for each additional $1,000 of adjusted gross household income.