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Is this tax deductable?

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mopowers
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Is this tax deductable?  Reply with quote  

I bought my first house last year and just recieved my mortgage interest statement.

Which of these items is tax deductable?

1) mortgage interest
2) points paid on purchase of principal residence
3) mortgage insurance premiums
4) real estate taxes

I plan on having a tax consultant prepare my taxes, but I was curious when I opened this statement today.

Thanks!
Post Thu Jan 21, 2010 1:47 am
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coaster
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1, 2 & 4 are, don't know about 3 because I've never paid PMI, but the answer should be on the IRS website. Search terms "PMI deductible" should get the answer. My guess is not. Let me know if that's right. Smile

~Tim~
Post Thu Jan 21, 2010 4:37 am
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mopowers
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Thanks for the reply!

After a quick search, it looks like mortgage insurance premiums are deductible.

http://www.irs.gov/app/vita/advanced/20/20_05_030.html

Thanks again.
Post Thu Jan 21, 2010 8:55 pm
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oldguy
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All 4 are deductable. The PMI hasn't always been, the law was changed not so long ago, maybe in the 2005 to 2007 time frame?
Post Thu Jan 21, 2010 9:41 pm
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coaster
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Thanks for the correction, that's good information to know. Smile

~Tim~
Post Fri Jan 22, 2010 5:29 am
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Raptor
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I believe however only if you are itemizing, depending on your personal financial situation it still maybe a better deal to take the standard deduction. Since I have a modest house, the deductable expenses never exceeded past the standard deduction. In short, this maybe the case and if you take the standard deduction, then none of the items are deductible.
Post Fri Jan 22, 2010 9:05 pm
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coaster
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The items remain deductible whether they're deducted or whether they're not deducted. "Deductible" is just status under tax law. Whether or not an individual takes what is allowed depends on whether or not it's to their advantage.

~Tim~
Post Sat Jan 23, 2010 7:37 am
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