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CONGRESS PASSES NEW
MI TAX-DEDUCTION
LEGISLATION.
On December 9, 2006,
new legislation was
passed to allow
qualified borrowers
with adjusted gross
incomes under
$100,000 to deduct
100% of
their borrower-paid
mortgage insurance
premiums on their
federal tax
returns.*
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The
provision is
effective
for new
purchase
transactions
closed after
December 31,
2006. MI
premiums
paid between
January 1
and December
31, 2007 may
qualify for
tax
deductibility
on
borrowers’
subsequent
federal tax
returns as
follows:
·
Borr
borrowers
with
adjusted
gross
incomes
below
$100,000
may deduct
100% of
their MI
premiums.
·
For
adjusted
gross
incomes
between
$100,000 and
$109,000,
deductions
are phased
out at 10%
increments.
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“We congratulate
Congress for helping
low- and
moderate-income
Americans overcome
barriers to
homeownership. By
making mortgage
insurance
tax-deductible,
Congress is
addressing the key
issue of housing
affordability for
many homebuyers.”
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