The tax law used to help a lot of people by letting them deduct the cost of mortgage insurance.
But times change, and in 2013 many of these deductions were no longer allowed.
How does the current law treat deductions for government or private mortgage insurance on homes, rentals, and home-offices?
You’ll find out when you read my new article titled Tax Tips: When You Can (and Can’t) Deduct Mortgage Insurance.
Three ways our fact-filled article can help you:
- We’ll tell you what every homeowner needs to know about mortgage insurance. If you buy a home and take out a mortgage on over 80% of the appraised value or purchase price, your lender will almost always require you to pay for mortgage insurance. But that just scratches the surface! To get all the facts you need, I urge you to read the full article.
- You’ll learn how to handle mortgage insurance for rentals. You won’t see anything about this subject in IRS publications, the tax code, the regulations, or the instructions for Schedule E. But… the IRS did publish guidance on its website. We’ll give you the inside story when you read the full article.
- We’ll explain what to do if you have a home office. Our advice? Treat your home office as commercial property and deduct the business percentage of your mortgage insurance on line 16 of Form 8829. We’ll explain this in greater detail when you read the full article.