MI tax deductibility considered by CongressMortgagePress.comHR 1813, federal tax deduction for mortgage insurance premiums
A bipartisan coalition of legislators has introduced a bill, HR
1813, to make permanent the federal tax deduction for mortgage
insurance premiums for borrowers making $109,000 per year or
less.
"The proposed legislation making the cost of mortgage insurance
tax deductible beyond 2007 will help low- and moderate-income
Americans overcome barriers to homeownership," said Steve Smith,
CEO of The PMI Group Inc.
"Mortgage insurance offers individuals and families a simple, safe
and smart way to buy a home with a low down payment, and that is
especially important in this economic climate."
The cost of mortgage insurance was made tax deductible for the
first time for transactions closed in 2007. Borrowers with adjusted
gross incomes below $100,000 may deduct 100 percent of their
mortgage insurance premiums paid between Jan. 1 and Dec. 31.
Deductions are phased out at 10 percent increments for borrowers
with annual adjusted gross incomes between $100,000 and
$109,000.
HR 1813 was introduced jointly by Reps. Sander Levin and Paul
Ryan, with Reps. Shelley Berkley, Dave Camp, Eric Cantor, Joe
Crowley, Rahm Emanuel, Phil English, Wally Herger, John Lewis, Ron
Lewis, Paul Ryan, Allyson Y. Schwartz, John S. Tanner and Jerry
Weller.
For more information, visit www.house.gov.
