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Did You Know? PMI is No Longer Tax Deductible…….

March 9, 2012

The ability of homeowners to write off the premiums they pay for private mortgage insurance  – PMI – expired quietly at the end of December, along with 58 other tax code benefits that Congress failed to renew.  Estimates are that this loss could cost individual home owners between $600 and $1,000 on their annual federal tax bills.

The loss of deductibility of mortgage insurance hits a segment of consumers – middle income and first time homebuyers – for whom affordability is especially important.  What also hurt is that these are the same consumers that were hit with the fee that was taken to fund the temporary payroll tax cut and extension of employment benefits in 2012.

Did you do your taxes yet and was your accountant, online tax service, etc.,  aware of this?

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