There is good news for homeowners with private mortgage insurance. The federal mortgage insurance tax-deductibility law has been extended through 2011, according to an announcement by the mortgage insurance company, PMI.
The law allows eligible borrowers–those with adjusted gross incomes up to $100,000– to deduct 100 % of their mortgage insurance premiums on their federal tax returns in 2011. The law was passed in 2007. Before then borrowers could not take this deduction.
For borrowers with incomes between $100,000 and $109,000, deductions are phased out in 10% increments.
Citing the reason for the extension, PMI says, “Expanding homeownership has long been a goal of the federal government. The federal government helps make homeownership more affordable for many homebuyers by making mortgage insurance tax-deductible, and the extension of the law will benefit even more homeowners.”
It’s a small relief that can be added to the category, “Every Little Bit Counts.”
For more information, see Tax-Deductibility FAQs on PMI’s website.