Congress recently extended legislation making private mortgage insurance
(PMI) premiums tax deductible through 2011!
PMI can help people buy a home sooner, by enabling them to put less than 20%
of the purchase price down when buying a home. This increase in purchasing
power can sometimes be the difference between affording the home of your
What's more, this deduction is not just for first-time homebuyers, so it can
be used by current homeowners looking to upgrade to a new home. However, it
does only apply to "qualified" residences, which typically include a primary
residence and a vacation home, but not an investment property.
It's important to note that PMI is only tax deductible for homeowners with
adjusted gross incomes of less than $110,000. Borrowers with adjusted gross
incomes up to $100,000 may be able to deduct 100% of their 2011 premiums.
Deductions are phased out in 10% increments for borrowers with adjusted
gross incomes between $100,000 and $109,000.
As with any deduction, be sure to consult your tax advisor if you have any
questions. And if there's anything at all I can do to help you with your
mortgage, please let me know. I'm always happy to do whatever I can to make
sure your mortgage is working for you!
SUNIL SETHI REAL ESTATE
CA DRE#: 01173766