Mortgage Insurance Premiums-Acquisition Only

[zeros]

My understanding of this deduction is that it is for acquisition costs only and not for a refinance. The finance company or bank, whatever it is, would know the purpose of the loan and also know that if it is for a "refinance," that it would not be deductible. Why does the bank list it on the 1098 form on a refinance? Curious.

[ChEAr$]

Many people thinks that just because there's a box in the software something goes in it.

Nature may abhor a vacuum, but software will accept a zero.

[Gene V]

Maybe some of Premiums

My understanding of this deduction is that it is for acquisition costs only and not for a refinance. The finance company or bank, whatever it is, would know the purpose of the loan and also know that if it is for a "refinance," that it would not be deductible. Why does the bank list it on the 1098 form on a refinance? Curious.

I see some or all of Premium may be deductable.

You can treat amounts you paid during 2011 for qualified mortgage insurance as home mortgage interest. The insurance must be in connection with home acquisition debt, and the insurance contract must have been issued after 2006.

From Pub. 936
Refinanced home acquistion debt. Any secured debt you use to refinace home acquisition debt is treated as home acquisition debt, However, the new debt will qualify as home acquistion debt only up to the amount of the balance of the old mortgage principal just before the refinancing. Any additional debt not used to buy, build, or substantially improve a qualified home is not home acquisition debt, but may qualify as home equity debt.

[dan doshan]

Too add to the above .. You may have to prorate the MIP depending on the facts of the situation. Balance owed on acquisition debt prior to refinance 100K, amount refinanced 120K.