Categories: General Tax Terms
Mortgage Insurance Premium Deduction is a tax deduction that allows homeowners to deduct the cost of mortgage insurance premiums from their taxable income. This deduction is applicable for premiums paid on mortgage insurance for loans taken out to purchase or improve a home, and it can benefit those who are required to pay for private mortgage insurance (PMI) due to a down payment of less than 20%.
In general, the deduction is available for qualified mortgage insurance contracts and is subject to income limitations. Taxpayers with adjusted gross incomes above a certain threshold may have the deduction phased out. This deduction can significantly reduce taxable income, thereby lowering tax liability for eligible homeowners.
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