Great News!!! Congress recently passed the Tax Increase Prevention Act of 2014, which includes extension of the mortgage insurance (MI) tax deduction. This deduction is estimated to save eligible homeowners about $200–$400 annually. Eligible households with adjusted gross incomes of $100,000 or less will be able to deduct 100% of their MI premiums. The deduction is reduced by 10% for each additional $1,000 of adjusted gross household income, phasing out after $109,000. According to National Mortgage News: “Under the bill, homeowners can deduct the cost of mortgage insurance premiums on their 2014 tax forms. This tax break covers private mortgage insurance premiums as well as premiums paid on Federal Housing Administration, Department of Veterans Affairs and Rural Housing Service guaranteed loans” (December 17, 2014). The U.S. Mortgage Insurers association said: “USMI commends passage by Congress last night of a one-year extension of vital homeowner tax relief. We are especially pleased that the legislation includes the tax-deductible treatment of mortgage insurance premiums for low and moderate income borrowers. We look forward to working with Congress towards permanent enactment of this important tax relief for homeowners” (December 17, 2014). The MI tax deduction is not expected to be available for the 2015 tax year unless Congress extends the exemptions. Homeowners should consult their tax advisor to determine their eligibility for the MI deduction.
Posted on: Thu, 08 Jan 2015 20:56:32 +0000
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