CONGRESS PASSES NEW MI TAX-DEDUCTION LEGISLATION.
CONGRESS PASSES NEW Mortgage Interest TAX-DEDUCTION LEGISLATION.
On December 9, 2006, new legislation was passed to allow qualified borrowers with adjusted gross incomes under $100,000 to deduct 100% of their borrower-paid mortgage insurance premiums on their federal tax returns.*
The provision is effective for new purchase transactions closed after December 31, 2006. MI premiums paid between January 1 and December 31, 2007 may qualify for tax deductibility on borrowers' subsequent federal tax returns as follows:
· Borrowers with adjusted gross incomes below $100,000 may deduct 100% of their MI premiums.
· For adjusted gross incomes between $100,000 and $109,000, deductions are phased out at 10% increments.
This announcement is courtesy of John Lupo, Shaylor Home Loans