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MIP Mortgage Insurance Premium on 1098 question

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    MIP Mortgage Insurance Premium on 1098 question

    I know that the Mortgage Insurance Premium that is on a 1098 statement DOES NOT always mean it is deductible.

    So here is my question. My client purchased their house back in the 1990's. Since then they have refinanced recently (2011) and of course used some equity to pay off bills. So is the MIP not deductible since this house was purchased back in the 1990's (original acquisition debt was before 2008)? Or is part of it, a percentage of the aquisition debt that was refinanced deductible?

    JUST BECAUSE THE NUMBERS ARE ON THE 1098 MORTGAGE INTEREST STATEMENT DOES NOT MEAN IT IS DEDUCTIBLE!

    Therefore, is the reason I ask this question.

    Any input would be appreciated!
    Thanks

    #2
    As I understand it .. Remaining mortgage debt 60K, refinance for 100K with additional funds used for personal reasons, then 60% of the premium would be deductible.

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      #3
      makes sense

      Yes, that is the way I understand it too. My brain is fried! Therefore, I can't think as clearly.
      Thanks for reconfirming that for me!

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