Private mortgage insurance paid all at one time at closing

[nanellen]

Taxpayer rec'd a 1098 mortgage interest statement showing mortgage interest premiums paid of over $5000.00
It was not a VA or Rural Housing Loan. Lender told taxpayer it is all deductible in 2013, although Pub 916
says the amount must be allocated over 84 months as it is prepaid for the entire life of the loan. Taxpayer says it
was a new type of loan. Can anyone shed any light on this or is the lender just wrong? Thanks

[JohnH]

Give a copy of the pub to the client and suggest they take it back to the lender.
Tell them when the lender provides a written explanation, and if it is acceptable, you can consider deducting it.
Meanwhile, we need an extension...

[nanellen]

Thank you John.

[taxea]

tell him lender is not a tax educated professional and IRS rule trumps lenders "BS"