Mortgage Insurance as Rental Expense

You are.

the mortgage broker was thinking only in terms of personal deductions on schedule a and didn't consider deductibility of ordinary and necessary rental expenses. ChEAr$, Harlan Lunsford, EA n LA

It's not deductible as an interest expense, because it's not interest. But I suppose it could be deductible as an ordinary and necessary business expense. Stu

Not a deduction for 2006 or earlier.

For new loans with a PMI in 2007, and it expires in a year or two, PMI will be allowed as a mortgage deduction.

-- Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

You are as far as rental property is concerned.

Never rely on mortgage brokers for useful tax advice.

It's rental property, Art.

ChEAr$, Harlan Lunsford, EA n LA

And you thought a mortgage broker knew something about taxation.

You are and it wasn't even close. It's a requirement of the loan for the benefit of the lender. Therefore, it is deductible.

Dick

However, if the LTV ratio is now lower than 80%, the PMI should no longer be necessary. That can occur due to principal paydown, or value increase. Seth

Well, sure it is, now that you (and Linda) point that out:^)

You are all right. pmi is a deduction for rental property.

-- Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH