Mortgage Insurance

[Snaggletooth]

Private Mortgage Insurance (pmi) is so common, you would think TTB would address the [deductibility/nondeductibility/phaseout, etc] of pmi. It is mentioned, and a link to the IRS definition is provided. None of these discussions tell the preparer what to do with it (or not to do).

I'll post here, and listen to any knowledge anyone would like to share.. Can the taxpayer deduct it? If so, likely Sch A? Does it phase out?

[Lion]

Publication 936 - Introductory Material

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Reminders


Mortgage insurance premiums. The itemized deduction for mortgage insurance premiums has expired. You can no longer claim the deduction.

[Lion]

https://smartasset.com/taxes/is-pmi-tax-deductible When Is PMI Tax Deductible?

Published on January 10, 2024, 6:07pm ET
Written by Mark Henricks
Edited by Arturo Conde, CEPF?
Reviewed by Michele Cagan, CPA Share

...a tax deduction for PMI policies issued after 2006. However, the deduction was allowed to expire starting in the 2022 tax year and has not yet been renewed by Congress...

PMI provides lenders with protection against the risk of a default when borrowers buy a home with a down payment under 20% of the purchase price. Premiums for PMI are added to mortgage payments. The cost could be up to 1% of the loan amount annually.

Legislation making PMI tax deductible was passed in 2006. It applied the deduction to policies issued in the 2007 tax year going forward. The measure has been periodically renewed, but expired after the 2021 tax year.

Currently, PMI is not deductible for the 2022 or later tax years.

[Snaggletooth]

Thanks Lion. I do know I used to deduct it. In recent years I have not, but I have seen some huge numbers for pmi on closing statements and also on 1098s.

[TaxGuyBill]

As Lion said, it is no longer treated as mortgage interest.

But it is still insurance. If insurance is a deduction, such as a home office or a rental, then it can be deducted as insurance.