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from Local Attorney, Michael H. Wasserman

Monday, January 7, 2008

Income Tax Deductions for (some) PMI payments extended until 2010

Most recent news relating to the costs home buyers must pay has been bad. Its not only getting harder to obtain the mortgage financing, its getting more expensive to do so. Finally, some good news for at least some of us. The Feds have finally gotten around to extending the income tax deductability of private mortgage insurance (PMI) through 2010.

The tax deduction is available to mortgagors

(1) of a personal residence and a non-rental second home,

(2) that originated after January 1, 2007.

(3) for the purchase or refinance, provided that the loan amount did not exceed the acquisition loan amount.


(4) BUT ONLY IF your family may earns no more than $100,000 per year. If your family’s income is over $109,000, the PMI deduction will not apply. The deduction is reduced by 10% for each additional $1,000 of household income, in between.


hey - its better than nothing!