Are the Mortgage Insurance Premiums paid deductible in Tax Year 2007?
Mortgage Insurance Premiums Treated as Home Mortgage Interest
According to the IRS, for the tax year 2007, Taxpayers "may be able to treat mortgage insurance premiums paid during 2007 as home mortgage interest."
However, the IRS states that the "mortgage insurance must be paid in connection with home acquisition debt, the mortgage insurance contract must have been issued after 2006, and you must have paid the premiums before 2008 for coverage in effect during 2007."
This mortgage insurance premium can be deducted on Schedule A (Form 1040), line 13.
But, per the IRS tax code, there are some limitations applied based on the Taxpayers adjusted gross income . These are that if "the IRS the Taxpayers 2007 adjusted gross income on Form 1040, line 38 is more than $100,000 ($50,000 if your filing status is married filing separately), the amount of your mortgage insurance premiums that are otherwise deductible is reduced and may be eliminated."