When it comes to taxes, most of us are used to expecting bad news rather than good. But last year, just before Christmas, Congress announced a new tax development all homeowners can appreciate. It passed the Protecting Americans from Tax Hikes Act of 2015.
The Act allowed homeowners’ to deduct private mortgage insurance payments from their taxable income for 2015. Even better, it extended the option through 2016.
If your income is less than $100,000, 100% of the mortgage insurance you paid is deductible. For every $1,000 of income above $100,000, the deductibility drops by 10%. If your adjusted gross income is $110,000 or higher, the deduction no longer applies.
For more details regarding your situation, contact your financial advisor.