Nobody’s perfect. And that’s certainly true of the IRS.
But let me be specific about how this hallowed institution messed up…
The IRS publication on rental properties contains a serious error. It states that you may not deduct your premiums on mortgage insurance expenses.
This is flat-out wrong and we’ll tell you why when you read my new article titled Tax Tips: Beware: IRS Error in Rental-Property Deduction Publication.
Three ways our fact-filled article can help you:
- We’ll provide you with some important background information. The personal itemized tax deduction for mortgage insurance premiums (that were deductible as qualified residence mortgage interest) expired at the end of 2017. It is highly probable that lawmakers will reinstate the deduction retroactively for all of 2018 and 2019. You’ll get all the details when you read the full article.
- We’ll explain the IRS’s big mistake. The cause of the error originates in IRS Publication 527. It states that the expiration of the mortgage insurance deduction applies to your rental property. This is simply not the case, as we’ll explain when you read the full article.
- You’ll learn about the important Aboussie and Dodd cases. Both cases bear on the mortgage-insurance issues we’ve discussed. The courts determined that how you treat the mortgage-insurance premiums depends on how the proceeds of the loan are used, rather than on the character of the property that you mortgage. We’ll make all this crystal-clear when you read the full article.