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IMPORTANT NOTICE:
Pending action by Congress, MI Tax-Deductibility is set to expire at the end of 2011.
CMG MI supports the extension of MI tax-deductibility as an important consumer benefit that facilitates homeownership. If the current status changes, this page will be updated to reflect the latest information.
For more information on Tax-Deductible MI and the valuable benefits it offers to homebuyers, please see our information below and the relevant links. |
MI is Tax-Deductible
Now Through 2011
Mortgage insurance (MI) has always been an easy, safe and affordable way for your Members to purchase a home with less than a 20% down payment. Now MI premiums are tax-deductible through 2011, as at the end of 2010 Congress extended the tax provision for one year.
All purchase and refinancing (up to the original loan amount) transactions with MI closed between now and December 31, 2011 are eligible for the tax deduction.*
- Members with adjusted gross incomes of $100,000 or less may deduct 100% of their 2007-2011 MI premiums**
- Deductions are phased out at 10% increments for each $1,000 a homeowner’s adjusted gross income exceeds $100,000, with a cutoff of any deduction at $109,000**
*Congress has the option to renew the deduction or make it permanent.
Members who find it difficult to accumulate the usual 20% down payment may find that MI is often the best way for them to finance their home purchase. With MI made tax-deductible, it’s an even better option for many homebuyers.
Click here to watch a video on the value of Tax-Deductible MI (available through Mortgage Insurance Companies of America).
Questions? Read our Tax-Deductible MI FAQ.
**Based on transactions closed in 2007-2011, and Member-paid MI premiums allocable to those years.
CMG MI cannot provide tax advice. Taxpayers should consult their own tax advisors concerning the applicability of this new deduction to their particular circumstances under the Internal Revenue Code and the laws of any other taxing jurisdiction. This information was not intended or written to be used, and it cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties. |