mortgage insurance deductible?

[Possi]

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

http://articles.latimes.com/2012/jan/15/business/la-fi-harney-20120115

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?

[Roberts]

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.

[Possi]

News to me

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....

[Roberts]

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.

[ChEAr$]

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

http://articles.latimes.com/2012/jan/15/business/la-fi-harney-20120115

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.

[taxxcpa]

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.

[veritas]

all i can say is

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

Good!.........

[TAX4US]

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

[New York Enrolled Agent]

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.