Q&A: Is the 1.75% Mortgage Insurance Premium (FHA loan) up front payment tax deductible in the tax year its paid?

Posted on Sep 6, 2012 in FHA Information

Question by BigBanski: Is the 1.75% Mortgage Insurance Premium (FHA loan) up front payment tax deductible in the tax year its paid?
I realize that the monthly MI payments are only deductible if AGI is under $ 100, patient abortion 000 a year. In addition to the monthly, prostate more about the FHA loan requires a premium to be paid- ie: 1.75% of the loan amount. Would that entire amount be able to be deducted as part of closing costs like points, title fees, etc?
The purpose of this loan is a re-fi, and it will be re-financed in 2009

Best answer:

Answer by Instant Tax Service
Your insurance premium that you are paying on your mortgage is deductible. It is listed on the Schedule A.

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One Comment

  1. When did you buy the house? The itemized deduction for the premium is only deductible if you recently bought the house. See 1040 instructions for schedule A.

    Since you appear to have paid a lump sum, you must prorate it over the life of the loan.

    Also see IRS pub 530.