Friday, December 28, 2007

Happy New Year from the IRS

Einstein called our income tax system "the most difficult thing to understand." That can't bode well for the rest of us, can it? But this year as we start to think about tax time many of those who took out a loan with mortgage insurance in 2007 are in luck.

Mortgage insurance will be tax-decuctible through 2010 assuming the following conditions:

1. A 100% deduction for households with an adjusted gross income of $100,000 or less. The deduction is reduced by 10% for each additional $1,000 of AGI, phased out entirely after $109,000.

2. Deduction applies to primary residences and second homes only -- so no help to investors.

3. The deduction only applies to loans closed in 2007. If you have a loan from 2006 with MI, there is no deduction available to you.

I'm a mortgage advisor, however, so don't take my word for it. Be sure to check with a tax accountant.

Happy New Year!

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4 comments:

Internet marketing said...

That was a great post. I couldn't agree more with your sentiments. Thanks for the effort.

SEO London said...

I think the concept is very powerful. Wishing you also a happy new year.

Birmingham SEO said...

Even though the new variety of reverse mortgage products creates confusion and the necessity of education for the consumer, there's also potential to reduce the cost of what has traditionally been a very expensive mortgage.

Cheap SEO said...

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