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MIP or PMI tax break for 2012 tax season

Valued Member

MIP or PMI tax break for 2012 tax season

Yesterday I got a letter from my mortgage company that said  the fiscal cliff deal brought back the ability to claim MIP (Mortgage Insurance Premium for FHA loans) or PMI (Private Mortgage Insurance for conventional loans)  paid in 2012 on tax returns this year and they were nice enough to send me a statement with the amount I paid this year.  I got my house in November so its not much but it will certainly help.

 

I haven't seen this posted recently, so I thought I would post it.

 

There is also an article on msn about it as well.

http://money.msn.com/taxes/article.aspx?post=a9c7cefc-6079-4b82-afe2-29dae7c14e7d



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Valued Contributor

Re: MIP or PMI tax break for 2012 tax season

I just noticed in the article you posted a link to that it said on March 31st, they plan to eliminate homeowner's ability to cancel mortgage insurance when it hits 78% of the home purchase price if the owner paid at least 60 payments! They did say homeowner's that bought a home through FHA BEFORE the change that they will still be able to cancel their mortgage insurance under the old rule. After March 31st, homeowner's will be required to pay mortgage insurance for the life of the loan so close before March 31st and get grandfathered if you can! I think I will start a new thread about this.
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Message 2 of 6
Valued Contributor

Re: MIP or PMI tax break for 2012 tax season

And I close in April, this sucks for us.

 

I guess we will refi Conventional when we can.

Message 3 of 6
Valued Contributor

Re: MIP or PMI tax break for 2012 tax season

If you earn over 110k you dont get the tax break. that sucks.

Message 4 of 6
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Regular Contributor

Re: MIP or PMI tax break for 2012 tax season

Is that 110,000 for single, married, or both?


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Message 5 of 6
Valued Contributor

Re: MIP or PMI tax break for 2012 tax season

I think it is per person or per individual salary. Similar to how the payroll tax cut didn't apply on income over a certain amount.
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