- quote -

Well, sure it is, now that you (and Linda) point that out:^)

You are all right. pmi is a deduction for rental property.

--
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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- quote -

However, if the LTV ratio is now lower than 80%, the PMI
should no longer be necessary. That can occur due to
principal paydown, or value increase.

Seth

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- quote -

And you thought a mortgage broker knew something about
taxation.

- quote -

You are and it wasn't even close. It's a requirement of
the loan for the benefit of the lender. Therefore, it is
deductible.

Dick

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Arthur Kamlet wrote:
- quote -

It's rental property, Art.

ChEAr$,
Harlan Lunsford, EA n LA

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DORFMONT[at]aol.com (Linda Dorfmont) wrote:

- quote -

You are as far as rental property is concerned.

Never rely on mortgage brokers for useful tax advice.

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DORFMONT[at]aol.com (Linda Dorfmont) <DORFMONT[at]aol.com> wrote:

- quote -

Not a deduction for 2006 or earlier.

For new loans with a PMI in 2007, and it expires in a year
or two, PMI will be allowed as a mortgage deduction.

--
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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"DORFMONT[at]aol.com (Linda Dorfmont)" <DORFMONT[at]aol.com> wrote:

- quote -

It's not deductible as an interest expense, because it's not
interest. But I suppose it could be deductible as an
ordinary and necessary business expense.

Stu

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DORFMONT[at]aol.com (Linda Dorfmont) wrote:

- quote -

You are.

the mortgage broker was thinking only in terms of personal
deductions on schedule a and didn't consider deductibility
of ordinary and necessary rental expenses.

ChEAr$,
Harlan Lunsford, EA n LA

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My client has a single family rental house which she has
been renting out for many years. When she first got her
mortgage she was charged private mortgage insurance because
her down payment was not 20%. I have been deducting this
insurance premium on her Sch. E. I recently got into a
discussion with a mortgage broker friend who says that this
premium is not deductible. After scouring the IRS sites and
the publication on rental property I have found that PMI is
not added to basis and is not amortized over the term of the
loan, but nowhere did I find it either permitted or
prohibited as a deduction as paid. Who is right?

Linda Dorfmont E.A., CFP, CSA

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