PMI Tax Deductibility Extended Through 2011

PMI Tax Deductibility Extended Through 2011

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
dreams...or not.

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 / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE <>

CA DRE#: 01173766