Saturday, September 8, 2007

Mortgage Insurance Premiums

For 2007 only, taxpayers can claim an itemized deduction for mortgage insurance paid in connection with acquisition indebtedness on a qualified personal residence. The deduction phases out ratably by 10% for each $1,000 (or portion thereof) by which the taxpayer's AGI exceeds $100,000. Phased-out amounts are halved for those who are married, filing separately (MFS). Thus, it is not available for taxpayers whose AGI exceeds $109,000, or $54,500 for MFS.