Mortgage Insurance

[photoman]

I have a client that bought a new home in 09. They paid 2900 for mortgage insurance Hud at closing (on closing statement) . The end of year statement from the mortgage company shows the 2900 in box 4 on the 1098. The mortgage was sold before year end and the new mortgage company shows 362.00 in box 4. I think I can take both numbers as qualified premiums. If I understand correctly any expenses up to year end would apply. Any comments on this . Can I take it all .

[nwtaxlady]

it depends...

it depends on whether the $2900 prepaid amount is thru VA, RHA, or FHA. It might have to be amortized over 84 months or loan period whichever is shorter.

This is covered in Pub 936 pg 7. Also in the codes 1.163.11T

Hope that helps.