Mortgage Insurance Premiums (MIP)

[Harvey Lucas]

are deductible as deductible mortgage interest for 2007? (ttb 4-10)

Can we amend 2007 returns for this?

qb says 2008?

Also, QB says "in connection with acquisition indebtedness on primary or second home"....if client refinanced the original loan that did not have MIP to a new mortgage that does, is the MIP on the new mortage considered acquisition indebtedness?

We can deduct this MIP for 2007 and 2008, or just for 2008?

Harvey Lucas

[solomon]

are deductible as deductible mortgage interest for 2007? (ttb 4-10)

Can we amend 2007 returns for this?

qb says 2008?

Also, QB says "in connection with acquisition indebtedness on primary or second home"....if client refinanced the original loan that did not have MIP to a new mortgage that does, is the MIP on the new mortage considered acquisition indebtedness?

We can deduct this MIP for 2007 and 2008, or just for 2008?

Harvey Lucas

Yes, Yes, No, and Both.

[John of PA]

Current Year only is deductibe

I'm not sure if this applies to you, but many time the MIP paid is in advance for several years. You may only deduct the MIP portion that applies to the current year.

[solomon]

I'm not sure if this applies to you, but many time the MIP paid is in advance for several years. You may only deduct the MIP portion that applies to the current year.

Good point. If it is prepaid, it must be amortized over the lesser of the life of the loan or 84 months.