Monday, December 11, 2006


The tax bill extending popular tax breaks through 2007 that was passed early Saturday morning apparently also provides for a deduction for PMI premiums on Schedule A.

PMI – Private Mortgage Insurance – is usually required when you buy a home with less than 20% down.

It appears that this new itemized deduction will only apply to PMI paid on mortgage insurance contracts issued in 2007. It will be phased out as AGI goes from $100,000 to $110,000 ($50,000 to $55,000 for married taxpayers filing separately).

I will be posting more on this, and the other provisions of the bill, on the FEDERAL TAX UPDATE Page at once it has been signed by George W.


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