Private Mortgage Insurance (PMI) was tax deductible, but that law expired…Now it’s back and covers 2015 retroactively.
PMI is required if you only put down a small amount to buy a home, so it protects the lender against default.
A tax package extends for 2015 and 2016 a provision that lets you deduct the cost of your premiums if you itemize your deductions. How much you can deduct depends on your income.
Borrowers with incomes below $100,000 can deduct all of their PMI. For borrowers with higher gross incomes, it is phased out at 10% increments for each $1,000 of income.
We at CFS Mortgage strive to keep our borrowers up to date on any changes that may impact their lives. Please give us a call at 312.642.7979 if you have any questions.