mortgage insurance on rental

[Possi]

I've googled, IRS'ed and searched here, but I still don't know how to capitalize mortgage insurance premiums on rental property.

Is it depreciated? If so, for how long? I looked in The Tax Book, and can't find how to do this.

I can read, if someone could direct me...

Thanks~

[Peachie]

Possi,

I've googled, IRS'ed and searched here, but I still don't know how to capitalize mortgage insurance premiums on rental property.

Is it depreciated? If so, for how long? I looked in The Tax Book, and can't find how to do this.

I can read, if someone could direct me...

Thanks~

Is the insurance paid for the entire year on the rental? If so, it's all deductible. If not, prorate what was paid for the year in question. I hope I understand the question.

Peachie

[Possi]

Yes, one year at a time.

Yes it is for that particular year.

So, I only capitalize it if it is paid up front? That's not how I read it. I better read again in the morning.

[Peachie]

You only

Yes it is for that particular year.

So, I only capitalize it if it is paid up front? That's not how I read it. I better read again in the morning.

deduct what was paid. If you had the property in service for 8 months, you can only deduct 8 months or however many months you paid for that year. What does TTB say? It has been my Tax Bible all day and helped me. If you haven't paid the insurance-there's no deduction for it.

[Possi]

Insurance

deduct what was paid. If you had the property in service for 8 months, you can only deduct 8 months or however many months you paid for that year. What does TTB say? It has been my Tax Bible all day and helped me. If you haven't paid the insurance-there's no deduction for it.

It does not specifically address Mortgage Insurance. I swear I read last night that mortgage insurance on rental property had to be capitalized. This morning, I can't find the source. I must be mistaken. Maybe I was looking at a topic where the insurance was paid up front, and not year to year.

Thanks for keeping me on the right road, peachie!

[Possi]

googled

This is what sent me up this road:
Google search:

Mortgage Insurance Premium Deductions



The IRS allows taxpayers to deduct their monthly mortgage insurance premium payments in the same year they paid them if they used their homes as their principal residences. However, owners of investment or rental properties cannot deduct their mortgage insurance premiums in the same year but instead must capitalize them. The IRS requires taxpayers to capitalize their mortgage insurance premiums as passive activity losses or business losses incidental to their real estate investment activities.



Read more: Can I Deduct Mortgage Insurance Premiums From Rental Property? | eHow.com http://www.ehow.com/info_10064233_ca...#ixzz1r50rkR3u