Who is eligible for the PMI tax deduction for 2008?

Previously, borrowers could not deduct the cost of private mortgage insurance payments on their federal taxes. A new federal law allows qualified co borrowers with adjusted gross incomes up to $100,000 to deduct 100% of their 2008 PMI premiums on their federal tax returns. Co borrowers with adjusted gross incomes up to $109,000 can take advantage of a partial MI tax deduction (the legislation includes a phase-out by 10% for each $1,000 a taxpayer’s adjusted gross income exceeds $100,000 with a cut off of any deduction at $109,000). Single borrowers are limited to an adjusted gross income of $50,000 to deduct 100% of their 2007 PMI. Partial deductions are possible with a phase-out by 10% for every additional $500 in adjusted gross income with a cut off of deductions at $54,500. The legislation is effective for PMI certificates issued from 2007 to 2010. For clarification see your CPA. Call TexasLending.com for your home loan today and send your email questions to info@texaslending.com.