Mortgage insurance write-offs
Many homeowners will be able to write off hundreds of dollars of mortgage insurance premiums on their taxes starting with their 2007 returns – a reward for steering clear of exotic “piggyback” loans.
Congress initially approved the tax break for only 2007, then extended it for three years in late December as the housing market sagged.
However, many people who pay for PMI, or private mortgage insurance, won’t benefit. Only insurance contracts issued after Jan. 1, 2007, qualify.
And the tax break is available only to homeowners with adjusted gross income of less than $100,000; after that, it phases out gradually until income hits $110,000.
For details, see IRS Publication 936.
