Tuesday, January 15, 2008

Attention 2007 Home Buyers! - Remember Your Tax Deduction

As the sun rises on this morning, I am reminded of the 2007 Federal Income Tax Filing Deadline that is three months from today.

One of my annual January mailings that keep me in touch with my clients is their HUD-1 Settlement Statment from the previous year. If my clients purchased a home in 2007, they will be receiving this mailing.

Later in this month, I will be including a little extra note in the annual mailing. Do you remember the Tax Relief and Health Care Act of 2006?

This signed legislation will allow 2007 homebuyers to deduct premiums paid for mortgage insurance - which typically is required when homebuyers purchase a home with less than a 20% down payment.

This new insurance premium deduction will only apply to mortgage insurance contracts issued in 2007 and is only available to taxpayers whose adjusted gross income does not exceed $110,000 ($55,000 for married taxpayers filing separately).

What did you say? ---- You didn't purchase a home in 2007. ---- NO PROBLEM!

Legislation has been passed extending the tax deduction for private mortgage insurance through 2010.

For more information about H.R. 6111 (look in Act 419-Code 163-6050H) , contact your CPA or tax attorney.

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