How much can you save with the PMI tax deduction? The mortgage insurance deduction will only apply to refinanced funds up to the original loan amount, not any extra cash you took out with the new loan. There are also restrictions to PMI deductions, including: PMI on a second property only qualifies if the home is used by you personally, not rented out. 1, 2007, but it depends on how the home is used. 1, 2007 still qualifies for PMI deduction if it is your primary residence.Ī second home might qualify for the deduction if the mortgage was taken out on or after Jan. The deduction is allowed only if the mortgage for which you pay PMI was taken out on or after Jan. To take the PMI tax deduction for tax years 2018, 2019, 2020 or 2021, keep in mind: It was only possible to take the deduction if you itemized, and if your combined itemized deductions were greater than the standard deduction for your filing status and tax year. The mortgage insurance deduction was made available again for eligible homeowners for the 2018, 2019, 20 tax years. Most borrowers pay mortgage insurance premiums when putting down less than 20 percent on a home. The mortgage insurance (PMI) deduction has expired for 2022, and guidelines for the 2023 tax year have not yet been determined.įor eligible years, PMI is deductible only if you itemize your tax deductions. The deduction was no longer available as of tax year 2022. This allowed homeowners who were paying mortgage insurance and itemizing their deductions the ability to write off the premiums for tax years 2018, 2019, 20. You might not know it, but in 2019, Congress reintroduced a federal tax deduction for private mortgage insurance (PMI).
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