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

Published 14 December 06 04:41 by Beth Larsen
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