Although it is considered to have limited applicability, the President signed in new legislation that gives some home buyers another tax break this year. The deduction allows borrowers paying a monthly mortgage insurance premium to treat the amount as mortgage interest.
However, there are several qualifiers.
The provision only applies to mortgage insurance policies issued in 2007 for homes purchased in 2007.
The deduction is only available to people with less than $100,000 in adjusted gross income on a joint or single tax return ($50,000 for married filing separately). The provision phases our by 10% for each $1000 of adjusted gross income over $100,000, so there is no deduction for individuals or families with adjusted gross income above $110,000.
The home owner is supposed to receive a statement from either the lender or the mortgage insurance provider stating the proper amount of the deduction. To find out if this provision applies to you, speak to your tax specialist.
However, there are several qualifiers.
The provision only applies to mortgage insurance policies issued in 2007 for homes purchased in 2007.
The deduction is only available to people with less than $100,000 in adjusted gross income on a joint or single tax return ($50,000 for married filing separately). The provision phases our by 10% for each $1000 of adjusted gross income over $100,000, so there is no deduction for individuals or families with adjusted gross income above $110,000.
The home owner is supposed to receive a statement from either the lender or the mortgage insurance provider stating the proper amount of the deduction. To find out if this provision applies to you, speak to your tax specialist.
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