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    mortgage insurance deductible?

    Has the mortgage insurance deduction gone away? I read that it was not deductible for 2012, then I found this January 2012 article.



    Any chance it will be reinstated before the end of the year, as so many are? Or should I be advising that it is GONE?
    "I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey

    #2
    PMI should be deductible because it reduces your interest expense by an equal amount.
    Don't know if it actually IS deductible but I think it was extended for 2012.
    Last edited by Roberts; 09-19-2012, 01:10 PM.

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      #3
      News to me

      Originally posted by Roberts View Post
      PMI should be deductible because it reduces your interest expense by an equal amount.
      Don't know if it actually IS deductible but I think it was extended for 2012.
      I didn't know that.... interesting....
      "I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey

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        #4
        Originally posted by Possi View Post
        I didn't know that.... interesting....
        Well in theory. They require the insurance because you are of greater default risk thus a higher interest rate would be warranted. They require the insurance in exchange for a lower interest rate until you meet a specified threshold.

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          #5
          Originally posted by Possi View Post
          Has the mortgage insurance deduction gone away? I read that it was not deductible for 2012, then I found this January 2012 article.



          Any chance it will be reinstated before the end of the year, as so many are? Or should I be advising that it is GONE?
          If we know it's not deductible for 2012, that's what we advise, and not take a chance on it being extended before end of year.
          ChEAr$,
          Harlan Lunsford, EA n LA

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            #6
            On the endangered list--MIP

            The Kiplinger Tax Letter (Sept 2012 issue) says: Also on the endangered list: The limited write-off for mortgage insurance premiums.

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              #7
              all i can say is

              Originally posted by taxxcpa View Post
              The Kiplinger Tax Letter (Sept 2012 issue) says: Also on the endangered list: The limited write-off for mortgage insurance premiums.

              Good!.........

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                #8
                Pmi insurance

                Tax book page 4-10 indicates that for 2011 it is still good. Does not mention gone in 2012. Anyone got clarification on this. I have some clients that pay a healthy pmi. Thanks

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                  #9
                  Originally posted by TAX4US View Post
                  Tax book page 4-10 indicates that for 2011 it is still good. Does not mention gone in 2012. Anyone got clarification on this. I have some clients that pay a healthy pmi. Thanks
                  Unless Congress does a retroactive provision, the deduction is gone. The IRC says:

                  Mortgage insurance premiums treated as interest

                  (i) In general
                  Premiums paid or accrued for qualified mortgage insurance by a taxpayer during the taxable year in connection with acquisition indebtedness with respect to a qualified residence of the taxpayer shall be treated for purposes of this section as interest which is qualified residence interest.

                  ....
                  (iv) Termination

                  Clause (i) shall not apply to amounts--
                  (I) paid or accrued after December 31, 2011, or
                  (II) properly allocable to any period after such date.

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