PMI Remains Tax Deductible for 2011
Great News! Congress has once again extended legislation that makes mortgage insurance (MI) tax deductible for many Americans. The New legislation ensures the tax deductibility of mortgage insurance on both purchase and finance on both purchase and refinance loans for qualified borrowers through 2011.
Why is this important?
· Tax relief is much needed in a time of struggling economic recovery, and continue to help protect the dream of homeownership for many.
· Mortgage insurance is not only safe and predictable, but it’s also cancelable and some offer other features borrowers want today, including job loss protection, Homeowner Assistance Program and homebuyer education discounts.
Will all borrowers with mortgage insurance qualify for the MI tax deduction?
This MI tax-deductibility legislation only applies to eligible borrowers with adjusted gross incomes of $109,000 or less who purchase or refinance a home in 2007-2011, and pay mortgage insurance premiums. It will be fully deductible for eligible taxpayers who are married. Single or head-of-household and who earn up to $100,000. The amount of the deduction incrementally phase out for those who have adjusted gross incomes between $100,000 and &109,000 annually.
How much can typical homeowner expect to save with MI deduction?
Individual savings will vary depending on the size of the loan and a borrowers adjusted gross income and tax bracket. According to an analysis by Bank rate, a homeowner with an $180,000 mortgage could save about $351 in taxes a year.
Contact your 1st Priority Mortgage Consultant for additional information
If you should have any questions regarding this topic or any other real estate topic from this blog please feel free to send Mark Key a question from the Q&A Ask a Question BOX at the top of the page I promise to get back to you as soon as possible or call 716-603-8649
If you should have any questions regarding this topic or any other real estate topic from this blog please feel free to send Mark Key a question from the Q&A Ask a Question BOX at the top of the page I promise to get back to you as soon as possible or call 716-603-8649
Mark Key
RealtyUSA.com
Cheektowaga New York 14225
716-603-8649
And Remember Every Home Needs A Key
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