On December 14, 2014, legislation was passed to allow for tax deductibility of mortgage insurance (MI) premiums for qualified borrowers, once again.
The deductibility is effective for purchase and refinance transactions closed after December 31, 2013. Mortgage insurance premiums paid or accrued after December 31, 2013, and through December 31, 2014, may qualify for tax deductibility on borrowers' subsequent federal tax returns as follows:
- Borrowers with adjusted gross incomes below $100,000 may deduct 100% of their mortgage insurance premiums.
- For borrowers with adjusted gross incomes from $100,000.01 to $110,000 deductions are phased out at 10% increments for each additional $1,000 of adjusted gross household income.
Please feel free to contact me with any questions you might have. I look forward to working with you and your clients. Please remember, I am licensed in Virginia, North Carolina and Florida.
Jennifer Keenan, Sr Mortgage Consultant, NMLS# 101837
Tidewater Home Funding, 757-272-4199