So, I read that in 2007 people can now deduct PMI payments from their income taxes. What are the rules reguarding this change?
Does the loan have to originate in 2007? Also, do you think it is better now to pay PMI or to take out 2 loans (80/20) while paying higher interest rate on the 20% loan?
2006-12-13 01:47:47 · 5 answers · asked by CoCoKauai 3 in Business & Finance ➔ Taxes ➔ United States
According to Mortgage News Daily, a PMI tax deduction was passed by congress and is currently on the table for a presidential signature. Nothing is official yet.
2006-12-14 11:36:07 · answer #1 · answered by jkwilson2008 1 · 2⤊ 0⤋
If this is true for 2007, then we will find out the details later in 2007 along with all of the rules associated with it.
The best way to find out which is better is to run the numbers. If you have one loan, you can eliminate PMI once you have 20% equity in your house.
2006-12-13 07:16:10 · answer #2 · answered by Steve 6 · 1⤊ 1⤋
You lose that deduction when the child grows up. So its not a marriage deduction at all. Suggesting that people be given deductions for having babies makes no sense. Some nations do give the parents a bonus that is a one time payment. But eighteen years of deductions goes much further.
2016-05-23 17:41:29 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Where did you read this?
I know that the PMI deduction was talked about earlier in the year, but I do not believe it ever passed congress.
This past congress got next to nothing accomplished in the past year.
2006-12-13 02:06:34 · answer #4 · answered by Wayne Z 7 · 0⤊ 4⤋
It is bit of a complicated issue. How about consulting a tax expert?
2006-12-13 01:53:17 · answer #5 · answered by Sami V 7 · 0⤊ 2⤋